Megasoft picks 60% in German IT firm

Chennai-based Megasoft is to acquire 60% stake in euro 1.4 million german IT services company - Beam AG - in an all cash deal, it was announced today.

The company, however, did not disclose the deal size.

The acquisition of the German firm, which is subject to the necessary statutory clearances, would give Megasoft a base for expansion of its operations in Europe, G V Kumar, CEO and MD of Megasoft, said.

"Beam AG, which has sound knowledge of European telecom business, makes them an excellent inorganic growth partner and will give us a quick entry into the European telecom market," Kumar said in a statement today.

Megasoft, a product-based technology company, has operations in the US, UK, Singapore, Malaysia and Germany, in addition to the Indian operations in Chennai and a telecom research and development centre in Hyderabad.

Rolf Strehle, CEO, Beam AG, said: "We are very excited about the wide range of solutions and increased capabilities we will get through megasoft. Especially important for our customers are the Xius range of unique telecom products, as well as Megasoft's high quality captive development centre capability."

Founded in 1992 at ULM, Germany, Beam AG provides high-quality consulting and project management services for automotive, telecommunication and production industries all over Germany, the release added.