Megasoft to merge with Visualsoft technologies

Hyderbad, Oct 3 (UNI) Megasoft Ltd, a transnational intellectual property-driven product-based technology company, today announced an agreement to amalgamate Visualsoft Technologies, a leading software solutions and outsourced product development company.

Addressing a press conference, Managing Director and CEO of Megasoft G V Kumar said with the merger Megasoft could strengthen its products and total solutions offering in the global markets.

This would be an all stock transaction with expected market price ratio. The final ratio was subject to undergo independent valuation and due diligence by both the companies, he added.

He said Megasoft expected the whole process to be completed in four to six months. The growing global telecom outsourcing to India and the fast-expanding Mobile Voice Network Operator (MVNO) market called for strengthening operations.

He said the combined entity would gain large and strategic oursourcing deals in telecom sector, in the specalist domains of roaming, inter-operability infrastructure, subscriber authentication and Operational Support System (OSS) technologies.

He said the valuation would be approximately Rs 172 crore and all stock deals, and every eight shares of VisualSoft would be replaced with five shares of Megasoft. Megasoft was a SEI CMM level four company that operated out of USA, UK, Singapore, Malaysia and Germany and in Hyderabad and Chennai. The fiscal ending December 31, 2005 had seen revenues at Rs 115 crore and profits were Rs 20 crore.

He said Visualsoft Technologies with SEI CMM level five quality practices and excellent development terms, had been successfully empowering customers globally with innovative end-to-end solutions.

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