WebEx Communications, the world's leading provider of web communications, has announced the acquisition of Bangalore-based CyberBazaar, which is India's leading conferencing company. The total consideration to be paid under the agreement is approximately $4 million in cash. | This marks a foray of the most well-known web communications provider into India and CyberBazaar will now become a 100 per cent subsidiary of WebEx Communications. |
| This acquisition will enable WebEx to provide multimedia web communications services for India's fast-growing service sector, enhancing communication between businesses in the region and their international customers. |
| CyberBazaar revenues for the four quarters ended September 30, 2003 was about $ 2.7 million. The valuation to this acquisition was done by Ernst & Young. |
| CyberBazaar also has about $ 1 million surplus cash. The acquisition is subject to various standard closing conditions and Indian government approvals. It is expected to close in the first quarter of 2004. |
| Speaking to media persons in a live conference call from WebEx headquarters in San Jose, California, Subrah S. Iyar, CEO and chairman of WebEx Communications said, "CyberBazaar has effectively tapped the niche market of audio/video and web conferencing in India. They also have a proven management team and a strong customer base. With this acquisition, we will now accelerate the delivery of next generation multimedia communication services." |
| CyberBazaar has been operational since eight years and has been profitable since the second year of operation. |
| The company registered Rs 15 crore in revenues during the previous fiscal and has grown at a CAGR of 100 per cent. |
| Nearly 70 per cent of its revenues come from IT and ITES clients, followed by finance and pharmaceuticals. |
| The service mix shows that 80 per cent its revenues come from audio conferencing. As web conference is yet contribute for a major share, this acquisition will provide that cutting edge. |
| WebEx serves 7,800 customers worldwide and is expecting to close the current year ending 31 December 2003 with revenues of about $190 million. |
| The company has worldwide market share of 64 per cent and currently derives 4-8 per cent of its revenues from international clients (those outside US). |
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