Take to buy supply chain mgmt firms

Take Solutions, a Chennai-based software solutions provider of supply chain management and life sciences products, is planning to take the acquisition route to set up base in North America, Europe and uncatered markets in Asia Pacific.

The company is close to acquiring two supply chain management companies with global presence, to be finalised by July 2008.

The newer markets will also see the company entering into new industry segments in its primary verticals of supply chain management and life sciences.

While one of the companies to be acquired is a supply chain execution (SCE) and collaborative supply management (CSM) software solution company serving more than 250 leading manufacturing and distribution companies in the world, the other is based in the foodservice industry.

"The acquisitions would be made either directly by the company or through its subsidiaries. The company would most likely use a combination of cash and stock if required for the takeover," said Srinivasan HR, vice-chairman, Take Solutions.

Through the new acquisitions, Take Solutions is planning an entry into hi-tech manufacturing, aero space, defence and automotive industries in its supply management vertical and pharmaceutical services, contract research and biotech in its life sciences vertical.

The company has followed a strategy of making acquisitions and amalgamations right from the year 2002 when it amalgamated with Millennium Infocomm, which was a software solutions company in the logistics and financial services domain.

In 2003, it acquired a division of iStart WebLimited and Metalogic Systems followed by acquisition of the equity capital of Take Inc and Onsphere Corporation in the US.

It has also taken a 58.06 per cent equity share capital of Autopartasia Pvt Ltd in India and 97.49 per cent equity share capital of Millennium Business Solutions, Malaysia, in 2006.

Currently, the company has 11 products in its product suite called OneSCM and will be releasing seven new versions between March 2007 and March 2008.

It also plans to add seven new products to its already existing six products, in the life sciences vertical by FY 2008.

The company has filed the draft red herring prospectus with the Securities and Exchange Board of India (Sebi) to enter the capital market with its initial public offering of 3 lakh equity shares of Rs 10 each for cash at a price to be decided through a 100 per cent book building process, to be listed on the Bombay Stock Exchange and National Stock Exchange.