Subex to acquire US firm for $ 2 mn

Subex Systems Limited, one of the biggest suppliers of fraud detection software for telecom firms in the world, today announced a that it will acquire the fraud detection unit of a America firm for $2 million.

The Rs 167-crore Subex, which has 80 telecom operators in 40 countries as its clients, said the takeover would further consolidate its relationship with clients such as Verizon and BellSouth, two of the largest communications companies in the world.

The company claimed that the deal with Virginia-based Mantas Inc. would bring in new clients, beside new technology.

"This acquisition gives us several significant wireline customers in North America," said Sudeesh Yezhuvath, the Chief Operating Officer of Subex.

The Bangalore-based Subex, listed in India for the last seven years, posted about Rs 50 crore revenues during the December quarter, nearly 63 per cent of it from the more lucrative product sales and the rest from services.

Subex has also seen both its revenues and profits more than double year-on-year in the last twelve months and has been concentrating on developing revenue-maximisation products for telecom companies worldwide.

The company claimed that the current deal would help it round off its product-portfolio by including Mantas's fraud-detection software.

"We will leverage our enhanced strength to increase our market share and grow in line with our projection," said Yezhuvath, pointing to the company's stated aim of more than doubling its turnover to $ 100 million (Rs 450 crore) by the end of FY09.

Trading at a price of around 10 times its earnings per share for the last twelve months, the stock ended 2.2 per cent down at Rs 406.50 on the BSE. The scrip had touched a 52-week-high of Rs 887 three months ago.