Mumbai, Jan 21 2008: Bangalore-based Logix Microsystems, a software product company focused on automotive e-retailing solutions, is in talks to acquire a US-based company for $20-50 million (Rs 80-200 crore) in the automotive solutions segment. The deal will be finalized in first or second quarter of this calendar year.

Logix recently acquired the majority stake in Add-on-Auto for Rs 6 crore. The Los Angeles-based company provides auto accessories software and has 23,000 optional for it users.

Over 90 per cent of its revenues come from the US market. Despite the slowdown in the US market, the company feels that it has not affected its growth. While new cars sales faces a dipped of 3 per cent in the last few month, sales of used cars have gone up. “The slowdown in the US market has brought good business for us. In the last three-four months, we signed deals worth $1 million a month. On average, we sign deals in the range of $6000,000 to 7000,000 a month,” said Sanjay Soni, MD, Logix Microsystems.

As the deal size has increased, the visualization of the companies have come down considerably. Soni believes that the visualization of the companies in the US have come down by at least 15 per cent due to the turmoil. Hence, a good time for acquisitions. The car accessories market in the US is a $150 billion opportunity while the car market is $650 billion segment. Soni notes that the growth is coming despite the fact that its online portal izmocars changes at least 40 per cent more than its competitors in the changes in the US market. “The US is a very mature market. In some cases we are able to generate 800-1,000 leads a month,” he adds.

As part of its growth strategy, the company will soon be entering into European market.