Subex mulls more buyouts

Subex Systems, which is aggressively ramping up its products business, is looking at more acquisitions to become a comprehensive player in the telecom revenue maximising game. For this the company is looking at various fund raising options including FCCBs and private equity routes.

Said Subash Menon, president & CEO, Subex: "Acquisitions is a major growth driver in the products business. With this step, we get clients as well as credible references, which would have been pretty difficult otherwise. Over the last year, we acquired divisions of Alcatel and Lightbridge in the fraud management area and this has given us significant leeway is getting ahead in the marketplace. We are constantly scanning the global marketplace for more acquisitions."

The inorganic growth will play a major role in Subex's target of being a $100 million firm by 2009. "We are working towards this raising for money when required for acquisitions should not be a problem for us," Menon added.

Subex presently has cash reserves of around Rs 25 crore and has announced a 1:1 bonus issue on Friday in an effort to increase liquidity and reward investors.

The company, which was funded by Intel Capital and UTI Ventures, closed last fiscal with a topline of Rs 116.55 crore and for the first half of its present fiscal its topline has touched Rs 83 crore, a growth of 73 per cent.