Date:16/10/2004 URL: http://www.thehindubusinessline.com/2004/10/16/stories/2004101601890500.htm

Back Four Soft completes CargoMate acquisition

Our Bureau

Mr Palem Srikanth, MD, Four Soft Ltd, and Mr Ge' Pijnappel, MD, CargoMate, at a press conference in Hyderabad on Friday. - - A. Roy Chowdhury

Hyderabad , Oct. 15

FOUR SOFT Ltd, a supply chain and logistics technology solutions provider, has completed the acquisition of CargoMate, a Dutch peer, and has converted it as its European subsidiary. The company has engaged consultants for more overseas buyouts.

Addressing a press conference on Friday, the Managing Director of Four Soft, Mr Palem Srikanth Reddy, and the Managing Director of CargoMate, Mr Ge Pijnappel, said this acquisition was approved by members of both the boards for a transaction value of $1.9 million (about Rs 8 crore). As per the arrangement, CargoMate shareholders will receive 87.5 per cent in cash and 12.5 per cent in the form of common stock of Four Soft. The transfer of shares has been completed and the subsidiary has been named Four Soft B.V.

Mr Ge Pijnappel said CargoMate is engaged in logistics related services for the past 14 years supporting the shipping and cargo industry in the Europe with about 50 customers.

This acquisition enables FourSoft's entry into the small and medium logistics and supply chain management service providers market in Europe.

Four Soft, which had cash reserves of about Rs 34 crore after the IPO, continues to scout for more acquisitions.

The company had raised Rs 8 crore through private placement, which saw investments from UTI Securities, Rs 20 crore from the IPO and the rest about Rs 6 crore was in the form of cash reserves.