The two firms had combined sales of about $250 million in the year to March 2005, and both have been growing at about 35 per cent per annum, said Kumar, declining to provide an outlook for the combined entity.
Shares in Bangalore-based Strides rose 9 per cent to 274 rupees, valuing it at about $220 million. Hyderabad-based Matrix rose 2 per cent to 188 rupees, valuing it at about $628 million.
Both boards approved the deal, which is subject to a valuation exercise and due diligence by both companies. The two boards expect to meet within six to eight weeks to finalise the terms of the merger plan, a notice to the stock exchange said.
