The Hindu Business Line : Subex eyes US, Europe for buys

But market buzz was that Subex might announce a deal sometime in March or early April. The products being acquired would be complementary to the existing line of offerings in the revenue maximisation space.

Subex has a cash/cash equivalent of Rs 37 crore on its balance sheet. Further, the company plans to raise $10 million (about Rs 45 crore) through a Global Depository Receipt (GDR)issue that would be listed at the Luxembourg Stock Exchange in March. Subex is also likely to leverage its stock along with the cash and the proceeds of the GDR issue to conclude the deal, he said.

Third product

The company recently announced its third product ONtrack, an end-to-end subscriber risk management solution. "Revenues from the ONtrack are expected to flow in from FY08," Mr Menon said, adding the company would target its existing and new customers with the new offering.

Currently, Subex has close to 90 clients, a number likely to more than double over the next three years as the company sees a good traction, Mr Menon said.

Subex, he said, planned to stay focussed in the revenue maximisation space and is working on a new product that would be launched some time next year. The company competes with vendors such as Hewlett Packard, Azure, EC Tel, Cape Technologies and Neural Technologies among others in the evolving and expanding revenue maximisation space that has a market size of $250 million. Subex addresses segments such as fraud management, revenue assurance through its products Ranger and INcharge. Contract management and margin management are some of the new areas in the revenue maximisation space.

The company that has a product development team of over 300 now, plans to add another 500 people at the rate of 100 a year over the next five years, Mr Menon said. It is currently in the process of setting up a 1,000-seat campus in Bangalore. This is likely to be operational by April next.