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| Mascon Global to acquire Sam Pitroda's C-SAM Inc |
| Ravi Menon / Bangalore Dec 05, 2009, 00:55 IST |
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Mascon Global Ltd (MGL) the information technology services company, plans to entirely acquire C-SAM Inc, the Sam Pitroda-founded mobile commerce company.
Mascon Global chairman and chief executive officer K Chandra told Business Standard he had signed a memorandum of understanding (MoU) but declined to disclose specific information on the investments involved, saying these are under discussion. “We will finalise the buyout in a month from now. It will be an all-stock acquisition," said Chandra.
C-SAM is a Chicago-based mobile transactions company promoted by technology evangelist Sam Pitroda, with 300 people on its rolls. The strategic acquisition agreement follows a joint development and reseller partnership which MGL initiated with C-SAM over a year ago. C-SAM has a portfolio of patents in mobile transactions, which MGL has been building on and reselling to its telecom and financial services clients.
Sam Pitroda and his family, who presently control C-SAM, will fully exit the company. Pitroda, former chairman of India's National Knowledge Commission, is currently advisor to the Prime Minister on Public Information Infrastructure and Innovations, and among the architects of India’s communications revolution. Pitroda also founded Wescom, a pioneering digital switching company, in 1974, which was eventually acquired by Rockwell International.
MGL has over 3,500 employees worldwide. The Chennai-based company posted revenues of Rs 375 crore for the year ended March 31 and expects the top line to grow 40 per cent in the current financial year.
The combined entity is likely to exceed 4,000 people. "C-SAM's mobile payment gateway technology will help us further boost our presence in the telecom and BFSI (banking, financial services and insurance) space. MGL has a strong telecom group and we will be bringing in some robust talent into the company with the C-SAM acquisition. We have also been gaining clients in the BFSI vertical, and C-SAM's mobile payment gateway fits our vision for the BFSI space," Chandra said.
With a revenue run rate in the $10-million range, C-SAM has deployed applications to facilitate mobile transactions through a range of mobile phone-based financial and non-financial solutions.
As of 2008, the company owned eight patents and had filed 20 more, covering the entire spectrum of mobile transactions. Besides Chicago, the company runs offices in London, Tokyo, Mexico, Mumbai and Vadodara.
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