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Abhrajit Gangopadhyay

Bangalore , Nov. 19

ASIA's largest independent publishing business process outsourcing firm, SPI Technologies Inc of the Philippines, has signed a pact to fully acquire the Pondicherry-based Kolam Information Services Pvt Ltd for $4 million. The buy-out would be funded out of internal accruals as well as external borrowings and the deal be spread over two years , SPI said in a statement to the Philippine Stock Exchange, a copy of which is available with BusinessLine.

However, the acquisition is subject to achievement of certain financial milestones by Kolam. Upon payment of the transaction price, SPI will own 1,000 shares or 100 per cent equity of Kolam, the statement said.

Despite repeated attempts, the CFO of Kolam could not be reached. The Managing Director of Kolam, Mr Punit Dhandaniya, is out of the country.

Kolam currently employs close to 300 professionals and has three production facilities counts Oxford University Press, Macmillan, Blackwell and John Wiley & Sons as its clients.

With the acquisition, SPI expects Kolam to contribute close to $3.5 million to its top line in the current financial year.

Mr Ernst C. Lu, President and CEO of SPI, said in a statement to the Philippine Stock Exchange that the recent deal marked SPI's foray into India and the combined marketing strength of SPI and Kolam would help swell the net earnings of the company.

Kolam's work spans the gamut of editorial functions ranging from manuscript development to production of books/journals and other pre-press activities.

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