IT services and solutions provider, Zylog Systems is “almost close to the final stage” of acquiring a Dubai-based company. The company is also scouting for buys in Singapore and is in the “second or third stage of due diligence” in short listing companies in the US for acquisitions.

“We are looking at specific niche players, which will give us domain as well as geographical coverage,” said a senior company official, on condition of anonymity. The company has allocated $10 million from its initial public offer (IPO) proceeds for mergers and acquisitions. Zylog has used Rs 12.09 crore from its IPO proceeds on acquisitions and strategic investments as on March 31. SudarshanVenkatraman, chairman and chief executive officer, Zylog Systems , had earlier said in a statement, “We are focussing on acquiring smaller companies offering niche products that compliment our solutions and services capabilities.”

The memorandum of understanding for acquiring a Dubai-based company in the product space will help it to set footprint in the West Asian region and this acquisition will give it an ample opportunity for cross selling its capabilities to its marquee clientele.

In the US, Zylog has short-listed about three companies with remote infrastructure management solution offering, the official said adding that the acquisitions are expected to be closed by the third quarter of this financial year.

The company reported a net profit of Rs 82.24 crore for the year ended March 31, 2008, up 52.17 per cent, compared to Rs 54.04 crore for the previous year. Revenue for the last fiscal stood at Rs 606 crore, up 50.20 per cent, as against Rs 403 crore for 2006-07.