Calsoft to acquire major stake in Japan based Codex

Chennai July 28 (UNI) California Software Co Ltd (Calsoft) today signed a Memorandum of Understanding (MoU) to acquire 66 per cent equity in Japan-based CODEX Company Limited.

This is Calsoft's fifth acquisition in the last two years.

The MoU would culminate in a final share purchase agreement subject to standard closing conditions, necessary approvals and completion of all formalities.

The entire process would be completed by the end of August this year, a company release said here.

This investment envisages an outflow of about US dollar 900,000 and would be an all cash deal. With this acquisition, Calsoft would be strengthening its commodity solutions segment and enhance the group's presence in Japan.

Incorporated in 2003 in Tokyo, Codex focuses on providing information technology based solutions to leading commodity trading companies in Japan. Codex is instrumental in delivering B2B solutions, trading management systems and various customized packaged solutions to Industry leaders like Itochu Corporation and Itochu Petroleum.

The company posted revenues of 90.4 Million Yen (US$ 769,000) and net profits of 14.5 Million Yen (US$ 124,000) for the year ended March 31, 2006.

Mr Sam Santhosh, Managing Director and CEO, Calsoft, said, "This investment is consistent with our mission to provide value added solutions in our chosen domains. The relationship opens new vistas in addressing the growing commodity solutions market in Japan and East Asia." Mr.Yota Haramoto, CEO, Codex said "we had been closely associated with Calsoft in representing their products and solutions in our country. Joining Calsoft group will allow us to service our existing clientele better." UNI GV VV 1334