Mascon Global harden on US acquisition

Mascon Global rose 0.3% to Rs 16.85 at 14:11 IST after the company said it had acquired two US-based firms for $55 million.

The company made this announcement after market hours on Wednesday, 12 March 2008.

The stock hit a high of Rs 17.50 and a low of Rs 16.30 so far during the day. The stock had a 52-week high of Rs 29.40 on 4 January 2008 and a 52-week low of Rs 8.10 on 29 March 2007.

The company’s current equity is Rs 324.81 crore. Face value per share is Rs 10.

The current price of Rs 16.85 discounts its Q3 December 2007 annualized EPS of Rs 2.48, by a PE multiple of 6.79.

The consideration for acquisition will be settled by issue of global depository receipts of $20 million and balance $35 million will be paid in cash. The acquisition will fetch additional revenues of $70 million to Mascon in 2008. One of the acquired companies viz. Jass & Associates Inc provides business software services. It is based at San Jose, California, and employs 550 people – which will rise to 1,200 by 2010. It also has a software development centre at Hyderabad. The other company, SDG Corporation, provides identity management services. It is based in Connecticut, US and is present in India and the UK.

Mascon provides software services and IT solutions including software development, packaged software integration, system maintenance and engineering design services to its worldwide customers operating in different industries.

Mascon’s net profit rose 1,070.9% to Rs 20.14 crore on 61.5% rise in sales to Rs 70.49 crore in Q3 December 2007 over Q3 December 2006.