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Subhash Menon thinks big. His company Subex Systems is a mid-market IT company with roughly $40 million in revenues. But his acquisition price can get as big as three times of his own revenues. In the largest overseas acquisition by an Indian software company, Menon's Subex has acquired UK-based Azure Solutions for $140 million (Rs 620 crore). It's a stock-cum-cash deal (97 per cent stock and 3 per cent cash).

Subex is a telecom software and security solutions company. With the acquisition, Bangalore-based Subex will have 24 per cent share of the market globally.

In the merged entity, the Azure management will hold 12 per cent, while its three main investors, New Venture Partners, Doughty Hanson Technology Partners and Intel Capital, will hold around 22.5 per cent collectively. Menon will hold 12 per cent, down from the current 18.57 per cent. It will be renamed Subex Azure Ltd.

Subex closed 2005-06 with a top line on product revenues of Rs 116 crore (total, including services, revenue Rs 181 crore) with profits of Rs 39 crore. Azure is a $31 million firm. [Via Business Standard]