Dhanus Tech scouts for buyouts in US, Europe
posted in Outsourcing News and Top Outsourcing deals, Outsourcing to India |Source: www.business-standard.com
K Rajani Kanth : Dhanus Technologies Limited, a Chennai-based telecommunications company, is on the verge of acquiring a company each in the US and Europe for a total transaction value of $4 million (approximately Rs 16 crore).
“We are looking at expanding our vehicle tracking system (VTS) business, Fleetrac, to the global level. For this, it is important we have the advantage of not only giving our clients the required equipment but also services. We are in advanced stages of discussions with two companies in the US and Europe, which are into telematics and telecom infrastructure designing, for acquiring 60 per cent stake each.
“Given the volatility in the market, valuations are currently being re-negotiated. We hope to seize the deals by the end of this calendar year,” S Muthukrishnan, vice-chairman, Dhanus Technologies, told Business Standard.
Dhanus went public in October 2007 and raised Rs 113 crore through its initial public offer, 50 per cent of which had been utilised for expanding its VTS business, technology improvements including upgradation of grid and general servers, and research and development.
“We intend to utilise the remaining IPO proceeds, besides relying on internal accruals and partially on debt, to fund the proposed acquisitions,” he added.
The 15-year-old company is slated to complete its first cross-border buyout deal, Borusan Telekom in Turkey, which was acquired for $30 million (Rs 120 crore), in a month.
Borusan is expected to garner revenues worth $140 million (Rs 560 crore) this year, which would be consolidated with Dhanus’ revenues in June 2010.
Borusan is a market leader in the enterprise internet services and fixed voice market among alternative operators.
Muthukrishnan said the company now had an order book of 50,000 subscriptions including 30,000 from the Kerala State Private Bus Operators’ Federation for deploying Fleetrac.
“This, coupled with Mpingi, our international broadband telephony service for residential and business users is expected to fuel our topline to around Rs 180 crore in the current July-June financial year, as against Rs 92 crore last year,” he added. The company is targeting one million customers worldwide from 20,000 now.
At present, Dhanus derives 40 per cent of its revenues from V-Tel, a global calling card aimed at Indians travelling abroad, 30 per cent from VTS and the rest from its business process outsourcing (BPO) and software services.
