The Hindu Business Line : Megasoft to acquire US firm for $65 m

Hyderabad, July 11 Telecom technology solutions provider Megasoft Ltd has concluded a definite agreement to acquire US-based Boston Communications Group, Inc (BCGI) in an all cash deal valued at $65 million.

“The boards of both the companies have okayed the deal and we will be filing a tender offer to purchase all the outstanding shares of BCGI at a price of $3.60 per share at a premium of 120 per cent over BCGI’s average closing at Nasdaq during the 30 days ended July 6, 2007,” Mr G.V. Kumar, Chief Executive Officer and Managing Director, Megasoft, told newspersons here on Wednesday.

Combined Strength

The impact of the deal would reflect in the fourth quarter results of Megasoft by an addition of $18 million in revenues, he s

aid. On the product front, BCGI would add its expertise in pre-paid telephony products to Megasoft’s capabilities and would operate as a 100 per cent subsidiary of Megasoft after the completion of the acquisition.

The acquisition would position Megasoft in advantage in the US and Latin American markets as BCGI would bring in about 20 tier-I clients for the company, he added.

BCGI has over 250 professionals on its rolls including 100 working at its development centre located in Hyderabad. Megasoft has over 350 professiona

ls. “Our combined strength would be over 600 professionals and we think about ramping it up further once we consummate the acquisition,” Mr Kumar sai

d. Mr Ersin Galioglu, Chief Operating Officer, BCGI, and others were also present.

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