Ontrack to acquire two overseas companies

Ontrack Systems plans to acquire two overseas companies for $10 million (about Rs 43.5 crore) in the next two months.

Addressing mediapersons in Chennai, B Hari, managing director, Ontrack Systems Ltd, said that the company was in negotiations with a US-based company and the other is a UK-based company. The deal is expected to signed by the end of next month.

In this regard Ontrack Systems is mulling funding options of a global depositary receipts (GDR) in Luxembourg, a preferential issue and convertible shares, he said.

S V Ramani, director & secretary, Ontrack Systems, said, "Only when the details of the value of acquisition is made known, will we decide on the funding options. If we go in for GDR issue, it will be for $12 to $15 million."

The funding will entail the acquisitions costs and working capital and the acquisition will be a cash-cum stock deal, said Ramani.

Hari said that Ontrack Systems also has plans to ramp its presence in Kolkata and set up operations in Chennai as one of its potential acquisition has operations in Chennai.