HYDERABAD: Close on the heels of plans for merger of Visualsoft with it, Chennai-based Megasoft, a transnational IP-driven technology company, has announced plans for acquiring a U.S.-based company in the telecom space for $20 million.

The deal is likely to materialise in four to six weeks and Megasoft is planning for another major acquisition in the U.S. in the $40 million bracket in five or six months, Megasoft Managing Director and CEO, G. V. Kumar, said.

Speaking to reporters here on Tuesday, Mr. Kumar said once the merger of Visualsoft with Megasoft was completed, the company's equity would increase to Rs. 4.6 crore from Rs. 3.2 crore. The combine that would have a head count of 1,200 would add 600 to 800 employees within a year.

With a projected business of Rs. 260 crore, 45 per cent of which comes from the telecom space, the combine plans to cross the Rs. 400 crore mark business by the next fiscal.

The merger of Visualsoft would give Megasoft an opportunity to leverage the strengths of the former and bid for far higher outsourcing deals. The merger, however, would face challenges like integration of the people and the need to grow together in a big way.

The merger would make 250 to 300 trained experts readily available for the combine, enabling it to win large and strategic outsourcing deals in telecom in specialist domains of roaming, interoperability and infrastructure.

With Visualsoft being valued at about Rs. 172 crore, every eight shares of Visualsoft would be replaced with five shares of Megasoft, assuming that the all-stock deal was expected to close within four to six months.

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