Subex mulls more buyouts

Posted on | October 31, 2005 |

Subex Systems is a provider of revenue maximisation software for telcos, which include fraud management and revenue assurance systems.

It is looking at more acquisitions to become a comprehensive player in the telecom revenue maximisation segment. For this the company is looking at various fund raising options including FCCBs and private equity routes.

The inorganic growth will play a major role in Subex’s target of being a $100 million firm by 2009. Said Subash Menon, President & CEO, Subex:

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.

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%.

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