Post acquisition, Megasoft will merge VisualSoft with itself, Both the cos have a few common shareholders
Though the exact details are not known, sources said that bankers/investors have made a strong proposal for a possible merger between both the entities. It is believed that both the companies have a few common shareholders between themselves.VisualSoft Technologies, which has called off a three-way merger with Applabs Technologies and eSolutions Pvt Ltd recently, is looking out for suitable partners to become a better entity as the company's performance is way off the mark from its promise.
It is believed that iLabs Venture Capital Ltd of Srini Raju and his associates are holding close to 20% stake in Megasoft and little less than 10% in VisualSoft Technologies and said to have plumbed for the possible acquisition and merger. When contacted, Srini Raju of iLabs group declined to comment on the issue. Senior officials of both the companies were not available for comment.
However, sources pointed out that both the entities have reportedly initiated preliminary level of discussion. "Both sides have started initial round of talks. The finer detail of the deal would be known only after the due diligence and valuations are over", sources said.
It may be recalled that ever since VisualSoft Technologies switched over from product development to pure-play IT services, the company's growth has not been on the expected levels.
