The Hindu Business Line : MIC Electronics to buy out InfoSTEP

Hyderabad-based MIC Electronics, a player in Light Emitting Diode (LED) display systems, will acquire the remaining 49 per cent stake in US-based InfoSTEP before December 2007, according to Dr MV. Ramana Rao, Managing Director and CEO, MIC Electronics.

MIC acquired 50.01 per cent stake in InfoSTEP in October this year for $4.4 million (Rs 19.8 crore) through the share swap route.

"We will deploy the proceeds of MIC's proposed IPO for acquiring the remaining stake," Mr Rao said. MIC would be listed latest by the first quarter of financial year 2007, he said.

InfoSTEP provides solutions in business intelligence, data integration, data mining, feedback management and multimedia solutions.

With this US acquisition, MIC hopes to sell its current LED offerings in US, which accounts for 45 per cent of the global LED market, said Mr Rao. LED displays contribute about 35 per cent to the MIC's total revenues. About 12 per cent of the company's revenues currently come from exports.

MIC will also bid for Indian Railways' tenders for LED display screens at railway stations. The LEDs will enable personalised advertising, and will also display time and reservation information.

THEME PARKS

The company is also in the process of establishing a theme park with a giant LED video display as the central attraction in Visakhapatnam, at a cost of $1 million (Rs 4.5 crore). "Similar parks at Hyderabad, Bangalore, Mumbai, Delhi, Melbourne, Sydney are under active consideration," said Mr Rao.

The LED parks will show films and screen live events; they will also have food courts and play areas for children.

WORLD CUP

The company's LEDs and digital perimeters (Perimeter Advertising Boards are located outside the boundary in cricket) are used in cricket and football tournaments in India, Malaysia and South Africa. MIC will soon be deploying them for use at the ICC World Cup in the West Indies scheduled for next year.

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