Mid-sized software services firm Mascon Global Ltd is close to making an acquisition in the US at an estimated deal size of more than $30 million (Rs128 crore), its chairman said on 10 April.

The acquisition is expected to add $40 million to the company’s revenues in 2007-08 and $5 million to the earnings before interest, depreciation, taxes and amortisation, he said.

The stake offered would be in the range of 3-4%, but in return the target company would have to give a performance guarantee in terms of revenues and profits.
The company has already obtained the board’s approval to raise $20 million through issue of global depositary receipts to fund the acquisition, and the process for this would be set in place once the deal is finalised.

At the end of this financial year, Mascon expects revenues to exceed $200 million, including the acquisition.The target company has a strong presence in banking, financial services, insurance and life sciences.

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