BANGALORE: Subex Systems, a leading telecom software product company, on Tuesday announced the acquisition of U.K.-based Azure Solutions Limited. The deal size is over $140 million.

According to Subash Menon, Subex Chairman, President and CEO, the deal is the largest overseas acquisition by an Indian software company and the IT industry is looking for many such mergers to go ahead. Subex-Azure will also become the world's leading vendor of Telecom Revenue Assurance Systems.

Mr. Menon said "this deal will clearly propel Subex-Azure to the position of market leader, way ahead of the competition. As the largest overseas acquisition to-date of its kind, this is a transformational transaction for both Subex and the Indian software product industry."

The company would go in for second issue of Global Deposit Receipts (GDRs) to raise Rs. 13 crore and the company had already raised Rs. 23 crores through the issue of GDRs and with this fresh proposal the paid-up capital would go up to Rs. 36 crore. "The meeting for approval of the board of directors is scheduled for May 9," he said.

Kiran Karnik, President, National Association of Software and Services Companies (Nasscom), said the acquisition was a milestone for the Indian IT company and a Bangalore-based industry acquiring showed the maturity the IT industry had achieved. This acquisition was a model for those IT companies that were looking beyond.

John Cronin, CEO, Azure said the telecom revenue Assurance and Fund Management markets would combine to address the overall problem that telecom operators do not collect all their revenues.

"The combination of the two companies, portfolios, customer bases and expertise creates the largest vendor in the market with global coverage."

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