Tuesday, July 08, 2003
Will acquire 100% stake in Tenet Technologies in a cash deal
worth Rs 18 cr
Gurgaon-based telecom and networking software company Hughes
Software Systems (HSS) has announced the signing of a definitive
share purchase agreement with the shareholders of Tenet Technologies
Private Ltd (Tenet).
As part of this acquisition, Hughes Software will acquire
100% stake in Tenet Technologies in an all cash deal worth
Rs 18 crore, subject to the approval of regulatory authorities.
Post regulatory approval, Tenet will become a 100% subsidiary
of Hughes Software.
Tenet Technologies is a Bangalore-based component equipment
maker. Tenet has been supplying software to telecommunication
technology developers for more than six years and has clients
like NEC, Hitachi and Panasonic.
Tenet Tech posted a turnover of Rs 12.4 crore in the first
half of FY 2002-03 (compared to Rs 4.7 crore in the previous
year). Its net profit was at Rs 2.7 crore.
Tenet carries out software design activities for 3G call
control applications, voice-over-packet and wireless applications.
Hughes Software has identified BPO as the new growth area,
which contributed 1% of revenues in FY 2002-03 and 3% of revenue
for Q4 of FY 2002-03. The business is expected to break even
by the third quarter of FY 2003-04.
Hughes Software's net profit for FY 2002-03 fell by 27.4%
and revenues dropped by 6% to Rs 220.4 crore. The company
clocked a slight jump in net profit for Q4 of FY 2002-03 to
Rs 13.8 crore compared to Rs 12.7 crore during Q4 for FY 2001-02
- a rise of 21%.
Last updated : February 2, 2004
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