The Hindu : Business : Quintegra buys U.S. firm

Online edition of India's National Newspaper
Tuesday, Oct 23, 2007
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Quintegra buys U.S. firm

Staff Correspondent

The deal is valued at $49 m and will be funded through debt

To pay an upfront amount of $20 m
PAC will bring in IT consulting

CHENNAI: Quintegra Solutions Limited, a Chennai-based IT services and products provider, has acquired PA Corporation (PAC), a U.S.-based information technology company, for $49 million (Rs. 198 crore).

Addressing a press conference here recently, Shankarraman Vaidyanathan, Chairman and Managing Director of Quintegra, said his company would pay an upfront amount of $20 million and the balance would be paid over the next three years. Under the agreement, PAC would have to earn a revenue of $91 million every year and $113 million by the end of the third year, he said. If it failed to do so, Quintegra could reduce the purchase price, he added. On funding, Mr. Vaidyanathan said it would be a debt funding route through State Bank of India. After the take over, the name of PAC would be changed to Quintegra, he added.

Mr. Vaidyanathan said that at present, Quintegra had 650 employees and PAC 350.

Mr. Pingho said PAC had achieved revenue of $61 million last year and a profit of $6 million.

It hoped to clock revenue of $70 million in the current year, he said.With this acquisition, Mr. Pingho said PAC would bring core competencies in high-end IT consulting and leadership in middle-space IT service to the Quintegra’s table.

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