Megasoft sells IT services division 'BlueAlly' for $13-15 million
19 Aug 2009
Megasoft Ltd has agreed to sell its IT services division `BlueAlly', for around $13-15 million, to Trianz Inc of the US, a wholly owned subsidiary of Trianz Holdings Pvt Ltd, India.
The board of directors, at its meeting on 19 August, inter alia considered and approved the sale of the BlueAlly division as a `going concern' for a consideration of around $13-15 million. The price was arrived at after taking into account the value of the outstanding receivables on the date of the transfer of the division, the company said in a filing with the Bombay Stock Exchange (BSE).
The sale is subject to the approval of the shareholders of the company under section 293(1) (a) of the Companies Act, 1956, and other approvals as may be required in this regard, the company said.
Chennai-based Megasoft, a mid-sized IT services company, has been in the process of a strategic transition programme to restructure itself as an IP-driven technology solutions company.
Megasoft is shifting focus to telecom products, where the receivables could be in the range of $13-15 million. Its telecom order book is about Rs250 crore, with an annual average of around Rs200 crore for the past two years. The telecom services business has an EBITDA margin of around 27 per cent, according to GV Kumar, MD and CEO of Megasoft.
The company is also launching new businesses like mobile commerce and real time transactions.
