Friday, July 18, 2008

IBM DAKSH TO INVEST IN KLG POWER

New Delhi

IBM Daksh Business Process Services has decided to acquire almost 1.2 percent stake in KLG Power Ltd, a subsidiary of KLG Systel, for about Rs 12 crore. KLG Power currently focuses on three technology products – Vidushi (software meant for distribution utilities), SG61 (for automatic metering infrastructure and energy management) and Connect Gaya.com (for demand side management solution for energy efficiency).

Kumud Goel, Managing Director, KLG Systel, said, “KLG has two lines of business – lifecycle solutions and the power solutions. The power solutions operations is being spun-off into a subsidiary. While IBM Daksh will have 1.2 percent stake in KLG Power, Texas Pacific will hold 20 percent and the balance will be with KLG Systel. Texas Pacific has acquired the 20 percent stake for $50 million (Rs 210 crore).” He further said that Morgan Stanley was the advisor for the deal.

In a notice sent to the BSE, KLG Systel Ltd said it had signed an “investment agreement with IBM Daksh Business Process Services for investment of Rs 12 crore in its subsidiary KLG Power Ltd.” The deal values KLG Power at almost Rs 1,000 crore. When contacted, an IBM spokesperson, however, declined to comment on the specifics of the investment.

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