The Hindu : Business : Globsyn to acquire Synergy Log-In

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Saturday, Jan 14, 2006

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Globsyn to acquire Synergy Log-In

Special Correspondent

Synergy to retain name; GTL will have management control

KOLKATA: Globsyn Technlogies Ltd (GTL), an IT company, would be taking over the Chennai-based Synergy Log-In Systems Ltd in a cash and stock deal, GTL Chairman and CEO, Bikaram Dasgupta, said.

Addressing a press meet, he said the total cost of the deal would be Rs. 7 crore, including a cash component of Rs. 90 lakh. Post-takeover, GTL would hold 41.94 per cent of the expanded equity of Synergy, which is a product vendor in the banking and financial services industry. It has development and resource centres in Chennai, Mumbai and Kuala Lumpur.

The Rs. 15 crore turnover Synergy had incurred a loss of Rs. 65 lakh last fiscal. The company has been in business for the last 15 years with its products being in use in major banks. GTL has a presence in IT-training, and software and is also getting into IT infrastructure.

While Synergy would retain its name, the corporate entity would get merged with the software business of GTL, Mr. Dasgupta said. Synergy Managing Director, V. Sanjay Kumar, said while the company's management control would pass on to GTL, Synergy's existing promoters and associates, would retain nine per cent of their holding, post-takeover.

An open offer has already been made for picking up an additional 20 per cent equity of Synergy at a price of Rs. 17.15 per share. The offer closes in April 2006.

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