Eonour Technologies to go for maiden overseas acquisition
By Nisha Das | 09 Dec 2002
Mumbai: Eonour Technologies, a Chennai-based IT company, has decided to go for its maiden overseas acquisition. The company is in talks with at least six medium-sized technology companies in the US, and a deal is likely to be clinched by the first quarter of 2003. Says Eonour Technologies Managing Director R Karthik, “We are in the process of acquiring a US-based technology firm. We have asked merchant bankers to find out an acquisition target, and price negotiations have been initiated with a couple of firms. Such acquisitions will give tremendous inorganic growth to the company.“ He, however, declines to give any further details on the US acquisition plans.
“The company will soon float a new subsidiary by merging all the four recently acquired companies together. We have acquired four domestic software firms — System Telecom and Data Services, Linux Solutions, Web Net Technologies and Trigger Technologies — for a consideration of Rs 22.46 crore, Rs 4.5 crore, Rs 5.1 crore and Rs 7.9 crore, respectively,“ he says.
Asked about the company's recent decision to split its shares, Karthik says: “Eonour, in its board meeting held a few months back, sought the permission of the members to split the stock into Rs 2 paid-up value, and the same was accorded to it. Since a majority of the shares (65.25 per cent) was held by the promoters, only a merger percentage was held by the general public.
“This resulted in poor floating stocks. In order to improve the liquidity and also to make the stock affordable even to small investors (Rs 10 paid-up shares were traded at Rs 689.50 during that period), the management decided to go for a split.“
He says the consolidated turnover of the company (including the recently acquired companies) should be in the range of Rs 170-175 crore, and the net profit in the range of Rs 34-35 crore. “This will result in an earning per share of Rs 4.12 for a Rs 2 paid-up share.“