The Hindu Business Line : Megasoft looking to buy company in the US

The company is betting high on telecom technology exports. Its telecom practice, which accounts for 36 per cent of its revenues currently, grew by 170 per cent during the last fiscal.

Mumbai , Dec. 4

MEGASOFT, product-based technology company, which just last went through an amalgamation with XIUS India Ltd (a company specialising in mobile software), is now scouting for an acquisition in the US.

"We want to acquire a company in the US," said Mr G.V. Kumar, Managing Director and CEO of Megasoft. The target company will likely be in the telecom software space and be chosen either for the product it might have or the customers that it can bring for Megasoft.

Megasoft which, according to Mr Kumar, is the only Indian company in the core network infrastructure OSS (operations support systems) space, is betting high on telecom technology exports. Its telecom practice, which accounts for 36 per cent of its revenues currently, grew by 170 per cent during the last fiscal and is gradually expected to be the dominant business of the company, said Mr Kumar.

Megasoft sees its employee strength in this business doubling by the end of this year as it wins more contracts, its gradual plan being to take to outsourcing.

One of what Megasoft considers its triumph is its ASP partnership with Canada-based Teleglobe (wholesale voice/VoIP player, in the process of being acquired by VSNL).

Megasoft has hosted its hub in Teleglobe, Montreal. This is an OSS core network centre and controls call routing and steers roaming traffic for Teleglobe, which associates with almost 150 operators across the globe. Revenues from this operation are shared in the ratio 60:40 respectively between Teleglobe and Megasoft.

With the XIUS acquisitions, Megasoft also operates a technology platform called XIUS Instaroam, a platform which enables global roaming to mobile customers who do not have roaming agreements in certain geographies.

Core network interoperability is also an area of interest to Megasoft, which can provide platforms so that operators who have various networks (Siemens, Ericsson, Nokia) can talk to each others.

Megasoft sees more opportunity outside India, which is probably why it is seeking a US acquisition. India is not a very good market for Megasoft since Indian companies are still building their capacities and going in for low-cost voice infrastructure. Moreover, realisations overseas are three to four times than that from domestic business, said Mr Kumar.

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