The Hindu Business Line : Helios buys 43 pc stake in US co

Helios & Matheson Information Technology Ltd has acquired a 43 per cent controlling stake in the US-based The A Consulting Team Inc, according to Mr V. Ramachandran, Chairman, Helios & Matheson.

The total consideration for the stake would be about $12 million, he said.

The Chennai-based company will acquire the US company for $8.75 million for cash, and also pay its promoter, Mr Shmuel BenTov, 35 per cent of the profit for the next two years as an additional earn-out component. The funding will be done from internal accruals and working capital, he told presspersons.

"We are perhaps the first Indian company to acquire a controlling stake in a listed US corporation with focus on healthcare space," Mr Ramachandran said.

Nasdaq-listed

The A Consulting Team is a 23-year-old Nasdaq-listed company since 1997, and posted a top line of $26.4 million in 2005. Mr BenTov will continue to be a director on board and President & CEO of the company, he said.

YES Bank is the exclusive strategic and financial advisor for the transaction.

Mr G.K. Muralikrishna, Managing Director, Helios & Matheson, said the payback would be three years or less for the company. Further, with offshoring advantage the American company would offer clients services at 50 per cent lower cost.

More Stories on : Mergers & Acquisitions | Outsourcing

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
`Indian BPOs must focus on higher-value services'

Integreo is now Zavata

KM World picks Scope

L&T has Rs 25,000-cr orders

AP takes battle for IT to Bangalore

Cos outsourcing cross-culture grooming for staff

Alcatel-Lucent merger not to hit pacts with ITI

Helios buys 43 pc stake in US co

EDS makes open offer for MphasiS

Hollywood experts to work with local talent

New security tool from Trend Micro

TCS Implementation Director

Infosys unhappy over `Karnataka's treatment'