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Maars Software merger with Mascon Global off

Our Bureau

CHENNAI, July 18

THE proposed merger between of the Chennai-based Maars Software International Ltd and Mascon Global Ltd has been called off.

A decision to this effect was taken at the board meetings of the two companies today. While Mascon's board met in Delhi, Maars Software's met here.

Mr V. Vedantham, Director, Maars Software, told Business Line that taking into consideration the prevailing business and capital market conditions, it has been decided to call off the proposed merger with Mascon Global.

The board also agreed that both companies could explore the possibilities of business arrangement for synergising the respective strengths, he said.

An official of Mascon Global issued a similar statement.

Mr Vedantham said that instead of becoming a single organisation, the two companies could approach the business market jointly. ``Already a couple of projects are being handled jointly between the two companies, and we could continue to do that in future too,'' he said. Incidentally, Mascon has been given space in the building occupied by Maars.

The two companies decided to merge in March this year. Mascon also submitted a scheme of merger before the Madras High Court. However, the proceedings would not be necessary now, he said.

As per the proposed scheme, for every nine shares of Maars Software, one share of Mascon Global was planned to be allotted to shareholders.

To a query, Mr Vedantham said ``we are not looking at any other company for merger''.

Mascon has strong a brand equity in North America with its flagship product AIMS, while Maars' enterprise solution, MAARSMAN, is strong in other market, including Europe.

Mascon, an end-to-end solutions provider across verticals such as financial services, telecom, retail and distribution, manufacturing and academia, reported a net profit of Rs 71.7 crore, on a turnover of Rs 346 crore for 2000.

Maars Software, an enterprise resource planning and e-business consulting services providers with capabilities in Application Integration and Enterprise Systems. Maars reported a revenue of Rs 88.4 crore for the year 2000.