India's Megasoft To Buy Boston Communications Group

India's Megasoft, which provides services to telecommunications companies, is moving to beef up its U.S. business by acquiring Boston Communications Group, according to an announcement this week by the companies.

Megasoft said it would commence acquisition proceedings through its wholly owned Tea Party Acquisition Corp. The aggregate purchase price is expected to be about $65 million, the companies said.

"Megasoft and BCGI link technology with services, thereby creating an exceptional platform to add next-generation, high-value products and strategically position the company for future growth," said Megasoft's CEO and managing director GV Kumar in a statement.

Megasoft said its North American business lagged its global business, and the BCGI acquisition will help it develop its North American business.

BCGI has had a strong presence as a mobile virtual network operator but has struggled in recent months, particularly after being on the losing end of patent litigation.

In April, BCGI cut about 30% of its U.S. workforce, and the company has been under review by the Nasdaq board of directors. The acquisition presumably would enable BCGI to put those difficulties behind it.

"We believe that the combined organization offers BCGI considerable growth opportunities that would be difficult to achieve without the synergies that exist between the two companies," said Joseph Mullaney, chief financial officer and acting CEO of BCGI, in a statement. "A standalone strategy for BCGI would require the development of new revenue streams to replace the decline in business from some of our tier-one carrier customers."