Locus, Choice announce merger

Hyderabad, Oct 11 (UNI) Locus Enterprise Solutions Ltd and Choice Solution Limited today announced entering into a definitive agreement for merger.

The merged entity aimed to achieve an organic growth of Rs 400 crore revenue by 2010 and become a listed company building a market capitalisation of Rs 1000 crore by 2010, Choice Solutions Chief Executive Officer and Managing Director K V Jagannath and Locus Enterprises Solutions President Vijay K Wadhi told a press conference here.

''Under the agreement, yet to be approved by regulatory authorities, Locus stock would be converted into Choice stock at fixed exchange ratio of two shares of Choice Common Stock for each outstanding share of Locuz Common stock'', they said.

The merger would expand the combined market reach and revenue base of the new entity Locus-Choice Solutions Limited to about Rs 150 to Rs 170 crore in this fiscal, they informed.

They planned to tap private equity for setting up a world-class global service centre at an investment of four million US Dollar, they added.

They said 75 per cent of revenue of the company was expected to come from enterprise solutions business and the balance from IT services. The employee strength would exceed 550.

UNI