Talisma Corporation, the Bangalore based mid-sized product firm announced on Thursday that its merger with Canadian IT firm Pivotal Corporation.
The merger follows plans by Talisma's majority investor Oak Investment Partners to buy outstanding shares of Pivotal for about $48 million, Talisma chairman Ranjan Chak told reporters in Bangalore.
He said Oak had invested so far $71 million in Talisma, a customer relationship management product firm since inception.
"The merged outfit would be renamed as Pivotal. However in India, Talisma brand would continue to be used," officials said.
Chak said the combined entity would estimate to reach a revenue of $100 million in the next 18 months.
The transaction is subject to customary closing conditions, as well as the approval of the Supreme Court of British Columbia and Pivotal shareholders, Pivotal said in a statement.
The $56 million Pivotal, presently listed on the stock exchange, would become a privately held firm and Oak Investment partners will be the controlling shareholder.
"The combined company will have about 700 employees and we are targeting the first half of 2004 to deliver the first level of integration between Pivotal and Talisma products," Chak said.