Radiant Software promoters retain project division

By Our Special Correspondent

CHENNAI, MAY 31. Radiant Software will hive off its project division - Lambent - into a separate entity prior to the merger of its training division with SRM Infotech, the training arm of SRM Systems and Software.

The new company will be christened Lambent Systems Pvt. Ltd. This will be fully owned by the existing promoters of Radiant Software. The newly-created project company will be headed by Ms. G. Gita, who will now quit her director post in Radiant Software.

Radiant and SRM yesterday announced their decision to merge their training wings to create a bigger entity in the name and style of SRM Radiant Infotech Ltd. Sources aver that the SRM group will have a majority holding in the newly created entity.

The Chairman and Managing Director of Radiant Software, Mr. S. Giridharan, will be the President and CEO of the newly created SRM Radiant Infotech. Mr. V. Sridhar, who is a co-promoter of Radiant, will also join the board of the new company. The SRM group will be represented by Mr. T. R. P. Sathyanarayanan, Managing Director of SRM Systems and Software Private Ltd. The board of the new company will be headed by the chairman of the SRM group.

The project division has fetched a revenue of around Rs. 2 crores last year for Radiant Software. The revenue from the training division was around Rs. 23 crores. While the training division has an employee strength of around 700 (including those employed by franchisees), the project division has a workforce of 100.

Ernst & Young which helped in bringing together the SRM group and Radiant is still working on the right model. Analysts see in this merger a `win-win situation' for both SRM and Radiant.

Will this be a forerunner for more mergers and acquisitions in IT training field? Indications are that it is. Last year saw the revenue for most of the IT training outfits balloon. The reasons are not far to seek. The craze for Java and Internet courses literally drove the business volume for these companies. The U.S. slowdown appears to have `done in these companies'. Computer training courses don't hold the kind of strong attraction it held a few months ago for students. According to sources, a Mumbai- based training company is reported to be scouting for a buyer. Industry watchers see either closure or merger of many a franchisee.

Send this article to Friends by E-Mail

Section  : Business
Previous : Microsoft launches Office XP in India