The Hindu Business Line : Subex close to buying US firm

Sources familiar with the development said the deal size is likely to be over $100 million and the company expects to use a combination of stock-plus-cash to fund it. Subex is also expected to go for a follow-on GDR offering to fund the cash side of the deal, they added.

Mr Subash Menon, CEO, Subex, when contacted declined to confirm the development. Instead he said, "I will deny the deal."

Subex shares have gained about 16 per cent over the past week and closed higher on Friday at Rs 503.95, a gain of 1.5 per cent, over the previous close. The proposed deal would be Subex's fifth acquisition till date.

Mantas deal

Subex bought out the fraud management business assets of Virginia-based Mantas Inc for $2 million in early March and in the process, acquired customers such as Verizon Long Distance, Verizon Local Exchange Carrier, BellSouth and Telus Wireline, among others. The company expects a net accretion of $1 million for the financial year 2006-07 from the Mantas deal. Mr Menon had then maintained that Subex continued to look around for acquisitions and was in talks with a few companies in the US and Western Europe. The company has a customer base of some 85 clients across 40 countries.

Subex had raised $10 million through a GDR offering and had used parts of it to fund the Mantas acquisition. The company also has a Rs 37-crore cash and cash equivalents on its balance sheet.

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