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T.E. Raja Simhan

Chennai, Feb. 21 Mascon Global Ltd is likely to acquire C-SAM, a US-based mobile transactions company promoted by technologist Dr Sam Pitroda. Both companies are jointly working on mobile technology, and Mascon is likely to close the acquisition by June, according to sources.

When asked to comment on the development, Mascon’s Chairman and CEO, Mr Sandy K. Chandra said: “We are partnering with C-SAM and our eventual aim is to bring the two organisations together. We should see some results by June this year. When this happens, India will be the centre for important innovations in the telecom industry.”

The current arrangement for Mascon is to exclusively license the C-SAM mobile technology platform that offers a range of mobile phone-based financial and non-financial solutions. Both companies are working jointly to access C-SAM clients for a full range of telecom solutions. C-SAM has over eight patents and more than 22 are currently in application, he told Business Line.

The acquisition cost is not set, but will be based on Mascon’s spending on all developments that will be over $5 million over the next 18 months. The 2008-09 revenues for C-SAM will be over $5 million, and expected to grow to over $40 million in the next three years, sources said.

Chicago-based C-SAM has offices in London, Tokyo, Mumbai and Vadodara. Following the development of core technologies in the US and Europe, C-SAM’s development centres in India focus on innovation, customisation and cost effective deployment for its customers like ICICI, TravelmartIndia, IRCTC, MTNL and Sumitomo Mitsui.

Sources said acquiring C-SAM will increase Mascon’s footprint in the telecom space. Mascon currently has around 450 people in telecom and C-SAM has around 175, including 120 in development. Post acquisition, the combined entity could end the year with around 1,000 employees.

On the Bombay Stock Exchange, Mascon’s scrip closed at Rs 18.10, down by 2.95 per cent.

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