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Aikya plans merger with US firm

V. Rishi Kumar

HYDERABAD, Dec. 14

THE US-based Transactions Unlimited Inc (TUI), engaged in telecom solutions, and the Hyderabad-based Aikya Infosystems are working towards merger plans including the possibility of equity swap aimed at leveraging the overseas development centre of the la tter.

The Chairman, Aikya Infosystems, Mr Raja S. Karipineni, and its Managing Director, Mr A.R.Rao, told Business Line that the new software development facility, located at Hyderabad, will be ideally suited to leverage the business interests of both companie s.

Mr Raja Karipineni, the founder of Transactions Unlimited Inc, said: ``As a software consulting company based in the Silicon Valley, and having strategic alliances with IT majors, we decided to grow in league with Aikya as organic growth alone is not ade quate to meet the dynamic demands of the technology trends.''

This association will also help both the companies to make use of each other's capabilities, like the marketing and business opportunities of the US company as also the development capabilities of the Indian company and its facility, Mr Rao said.

The Indian facility will also develop the necessary training programme to cross-train employees.

TUI's internal productivity development tools and management consultancy capabilities will help in optimising engineering resources, Mr Karipineni said.

While stating that the merger plans are at advanced stage, Mr Rao said that it would take about a month to finalise the modalities of the merger, which may be either be through a swap of equity or any other mode.

``This development will also help our range of clients including Worldcom, ADC Telecom, Pacific Bell, Andersen Consulting to address vertical markets of financial services, healthcare, insurance, telecom as also partners like BEA Systems, CBSI, Comsys an d Oracle Corporation,'' Mr Karipineni said.