TCG Soft buys 75% in Ivega for $5m

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TCG Software, a part of the The Chatterjee Group and providers of IT-centric business solutions, has picked up more than a 75 per cent stake in the Bangalore-based software services company Ivega for around $5 million.

The merged entity, TCG-Ivega, will offer IT services in financial, pharmaceutical, healthcare, manufacturing and telecommunication in India, north America, Europe, Asia Pacific and Middle East. Giri Devanur, chairman and chief executive officer of Ivega, will now head the new corporation as managing director and chief executive officer of TCG-Ivega.

According to sources, two major investors in Ivega "" ChrysCapital and Global Technology Ventures (GTV) "" have exited the company with no absolute gains.

While ChrysCapital, which held a 22 per cent stake in Ivega with an investment of around $3.5 million, got back around $ 2 million, GTV has got back the same $2 million which it had invested for a 18 per cent stake in Ivega.

It is also learnt that Giri Devannur, promoter and chief executive officer of Ivega, is paring his stake to 13 per cent from 36 per cent.

The deal brings to an end to a flurry of activities surrounding Ivega's long scout for possible partners. Companies such as Kshema Technologies and Patni Computers were among the names as possible acquirers for Ivega.

Ivega currently has around $5 million in turnover in addition to $5 million in cash. The combined entity will have approximately 700 professionals, one development centre each in Bangalore, Kolkatta, Mumbai and one in the US.

Purnendu Chatterjee, chairman of The Chatterjee Group said: "This merger will create a new force in specialist IT services and this move comes at a time when there are significant opportunities for enhanced growth."

Devanur said: "We are excited about this merger and the opportunities it will provide for ourselves and for our clients."

According to a statement from the company, the TCG Group will have a controlling stake in the merged entity and the deal is expected to close by July 2004.