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Our Bureau

Hyderabad, Nov. 13 Megasoft Ltd today announced the management’s move to restructure its telecom business following the completion of acquisition of BCGI, a Nasdaq-listed telecom services company, which has been recently de-listed after buy out of shares.

This move is aimed at addressing the telecom products and services business with a new identity Xius-BCGI which will have its marketing operations based out of Bedford in the US. Mr Ersin Galioglu has been appointed the chief operating officer of this new business unit.

The Managing Director and Chief Operating Officer of Megasoft, Mr G.V. Kumar, said globally the telecom sector is witness to significant consolidation even as new breed of specialised services providers such as mobile virtual network operators, who typically do not own their infrastructure, crop up.

This calls for a different approach and a new brand identity to offer end-to-end telecom services, covering products and hosting services. “To tap into this market, we would have US-centric marketing operations under the Xius-BCGI brand,” he said.

Addressing a press conference here today, Mr Kumar said: “the company is expected to close this fiscal ending December 2007 with revenues of Rs 290-300 crore. As we restructure operations and focus on two broad business lines of telecom services and outsourced product development with Blue Alley, the company is heading towards revenues of Rs 470-500 crore during 2008, with a profit of about Rs 100 crore.”

Megasoft is in the process of concluding a few deals in the telecom business in the US and Latin America and is evaluating business potential in the Indian market.

The top management team has been strengthened with Mr Dan Carney to head operations, Mr Ken Sonberg as head of R&D and Mr Vasant Kumar as head of global services delivery as well as back office.

Asked about the company’s move to hive off land at Vizag, Mr Kumar said that the land is likely to fetch about Rs 40 crore. The company had earlier leveraged the VisualSoft facility in Hyderabad to raise $25 million to fund the BCGI acquisition.

More Stories on : Restructuring | Software | Telecommunications

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