Sigma eyes 50 percent rise in revenue after acquisition

The Jakarta Post , Jakarta , | Tue, 03/18/2008 1:13 AM

Information communications technology (ICT) provider PT Sigma Cipta Caraka, newly acquired by PT Telkom, is targeting the addition of 120 clients and at least US$40 million in revenue this year.

Sigma was acquired by Telkom on Feb. 22 when the nation's largest telecommunications firm purchased an 80 percent stake in Sigma for $35 million.

"We're optimistic of the target due to the huge potential the ICT industry offers in the country," president director Djarot Subiantorom said Monday, adding that the revenue target was a 50 percent increase from last year's.

Sigma currently has 170 clients, mainly banks, while Telkom has around 6,000.

The acquisition would help Sigma achieve the target, Djarot said.

"Apart from benefiting from Telkom's huge number of clients, the arrival of Telkom is expected to strengthen Sigma's competitiveness in terms of network competency as well," said Djarot.

"By this acquisition, both Telkom and Sigma hope to be main players in ICT at a regional level," he said, adding that the company planned to go public with a 20 to 30 percent release of its stake within two years.

The acquisition was Telkom's first in the ITC sector. Telkom has said it is planning soon to acquire 12 IT companies in Southeast Asia and South Asia.