| Technology and software
services player Kshema Technologies Ltd seems to be the latest target of
prospective suitors. According to market sources, Kshema is believed to toying
with the idea of a merger with a larger listed player.
Citibank, which holds 4 percent stake in Kshema, is also open to the idea of
an exit through merger following its decision to look at large-sized deals. When
contacted, Citibank head of private equity Ajay Relan said while they were not
looking at selling out their stake to another investor they were open to a
listed stock exit option. "Kshema is looking at a merger option, possibly with a
listed company and we, like all the other investors, will get a listed stock
exit option. Other than that we are not really looking at selling to an
investor," Relan said.
Among the names doing the rounds is Bangalore-based Mascot Systems Ltd which
is said to have evinced interest in Kshema Technologies. Mascot is keen on
making a number of acquisitions in the domestic market to ramp up operations.
Mascot CEO Gerhard Watzinger in a recent interview said Mascot had
initiated talks with a number of mid-sized players in Bangalore but was looking
for buys at the right price and management in the areas of healthcare, embedded
software and retail. According to investor sources, Digital GlobalSoft Ltd had
at one point submitted a buyout proposal to Kshema early this year, which
however did not materialise.
Kshema is estimated to be worth over Rs. 110 crore (over two times its
revenues of $10 million). It is a strong player in the embedded software,
industrial automation, healthcare and financial services space. Kshema
Technologies CEO Anant R Koppar refused to comment on the merger option when
contacted.
Source: The Financial Express
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