"We hope to seal an acquisition in the telecom vertical space in the latter part of this year," Megasoft's Managing Director, G V Kumar, told PTI here.
The cost of the acquisition would be up to $50-million, he said, without revealing any further details.
The company, which clocked a turnover of Rs 297-crore and PAT of Rs 55-crore in FY07, hopes to cross the Rs 400-crore turnover mark and achieve a PAT of Rs 85-crore this fiscal, he said.
Megasoft is now focussing strongly on telecom and an acquisition will lend it further muscle in this business, he said.
"The biggest value in such an acquisition is customer acquisition and we will go in for a company which will give us a strong customer base," Kumar said.
The acquisition would be funded through internal accruals and leveraging the company's real estate assets. "We have strong cash flows and there will be no problem in funding our acquisition," he said.
Megasoft had acquired a US-based company, Boston Communications Group, Inc (BCGI), in September last year for $65-million.
Since the acquisition, Megasoft has rationalised its manpower in BCGI, reducing it from 230 to 69 but has added about 100 personnel in its Hyderabad facility, Kumar said.
Megasoft, which added two new products to its portfolio last quarter, plans to launch two more products later this year.
"These will be in the areas of providing wi-max service infrastructure and enhanced payment products," Kumar said.
Megasoft which is primarily into telecom and IT and product management services, plans to focus strongly on its telecom business "given this sector's immense growth potential", Kumar said.
Telecom revenue should constitute around 70 per cent of the company's total revenues this fiscal, he added.
