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SLI to merge with its Indian partner

Fakir Chand in Bangalore

In a strategic move, SystemLogic Inc, a US-based IT company, has merged with SystemLogic India, its strategic partner in India, as part of its consolidation and expansion plans.

Located in Santa Monica and the Silicon Valley in the US, the 6-year-old SLI was founded by Pradeep Hiremath, an NRI hailing from North Karnataka, to enable medium and large enterprises extend their operations to the e-business model through the implementation of market-driven applications such as customer relationship management and supply chain management.

The merger of the two entities will pave way for the US outfit to operate as a subsidiary of the Indian set-up. As a result, the combined strength will enable the company to meet diverse needs of its growing list of customers by synergising their operations.

Post-merger, the Rs 280-million company plans to raise dollar 4 million through private divestment of its Rs 60 million paid-up capital at a premium from institutions and angel investors.

Since the company's valuation and discussions with venture capitalists are in progress, the company officials declined to give details of the proposed holding pattern. The promoters, however, will retain around 55 per cent of the post-diluted equity.

"As a leading solution provider with expertise in enterprise-wide application development, the merged SLI will have technology edge to execute projects being undertaken in the US, Far East, and India. The company has recently tied up with Skyva International, the Massachusetts-based provider of collaborative commerce solutions, to offer e-business and e-commerce enterprise infrastructure solutions," Hiremath said.

SystemLogic has alliances with leading IT providers, including Oracle, Powersoft, Sybase, Microsoft, HP, and Netscape.

Money