CA, Pentafour forge alliance for accounting solutions
According to reports appearing in a leading financial newspaper, Computer Associates (CA), USA, in association with Pentafour Software will provide web-enabled accounting software.
CA and Pentafour Software will enter into a 51:49 joint venture with CA holding majority share. CA will provide the core technology and funding (US$ 1.5 m), while Pentafour will provide the software expertise.
CA is one of the bigger names in the global software industry. A tie-up with CA will boost Pentafour's image in the domestic and international markets in the field of accounting software. Pentafour has already carved a niche in multimedia software. The tie-up with CA will give it critical exposure to web-enabled accounting software. With the Internet penetration the world over growing at explosive rate, demand for web-enabled accounting software will also increase.
Development of the accounting package will mark Pentafour's foray in accounting products. Very few Indian companies have successfully developed products. But as the accounting product will be backed by the CA brand, marketing it will be far easier. If this venture is fruitful, Pentafour can look at more ventures on these lines with CA or other software majors.
Pentafour's stock has been trading at a discount to its peers largely due to poor management perception. Although the management has taken steps to address that concern, it is debatable whether it has impressed investors. Analysts have flagged a 'BUY' on the company based purely on its unique multimedia capabilities.
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