Financial Daily from THE HINDU group of publications
Thursday, Aug 12, 2004
Financial Daily from THE HINDU group of publications Thursday, Aug 12, 2004 |
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Info-Tech
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Mergers & Acquisitions Subex set to acquire Lightbridge product Our Bureau
Bangalore , Aug. 11 CLOSE on the heels of acquiring the fraud management division of Alcatel, Subex Systems Ltd announced on Wednesday that it was buying out the Fraud Centurion product of US-based Lightbridge Inc, a value-added transaction processing company. This acquisition will add 14 new clients to Subex's customer base and consolidate the company's position as the leading vendor for fraud management solutions globally, a company release said. While Subex refused to reveal the deal size, market sources estimate that the Lightbridge acquisition cost could be around $3 million. Prior to this acquisition, Subex had a client base of about five clients in the US. "We are acquiring Fraud Centurion product purely from the customer perspective. The acquisition will help Subex take giant strides in the US market," said Mr Subash Menon, President & CEO, Subex Systems. The company will fund the Lightbridge acquisition from a proposed $10 million Foreign Currency Convertible Bonds issue, Mr Menon said adding, Subex plans to list the bonds on the Luxembourg Exchange by the month-end. "Coming close on the heels of our European expansion, we now have a clear leadership position in two of the biggest markets - Western Europe and the US," Mr Menon said. This acquisition would also expand its reach into Canada and Latin America, he said. Subex expects revenues to trickle in from the 14 new customers, that it plans to migrate to its product from the next financial year, Mr Menon said. "We plan to transition the core support team from Lightbridge to our new facility located in Denver US," he added. Subex's new facility in Denver is expected to be operational over the next few weeks and would act as a sales and support office for the Americas. Besides taking over the support of Fraud Centurion's global clientele, Subex will also merge the Fraud Centurion's functionalities with its flagship FMS, Ranger.
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