Allied Digital acquires US firm for $30 mnJuly 10th, 2008 - 4:56 pm ICT by IANS
Mumbai, July 10 (IANS) Allied Digital Services Ltd (ADSL), which provides information technology infrastructure management services, has acquired a majority interest in the Los Angeles-headquartered En Pointe Global Services (EPGS) for $30 million, the company announced Thursday. Announcing this here, the company said En Pointe Technologies Inc (ENPT), specializing in business-to-business information technology products, services and solutions, will sell its majority interest in EPGS that it holds through its wholly-owned subsidiary En Pointe Technlogies Sales (SalesCo).
In structuring the sale, SalesCo will transfer substantially all of its service employees and related contracts to its wholly-owned subsidiary, EPGS.
According to the agreement, ADSL will acquire from SalesCo an 80.5 percent interest in EPGS for $10 million in cash and 745,000 shares of ADSL stock with a one-year lockup from the date of issuance.
SalesCo will retain the remaining 19.5 percent interest in EPGS.
ADSL’s market cap is currently valued at approximately $14 million, as quoted on the Bombay Stock Exchange.
In connection with the transaction, En Pointe, SalesCo and EPGS have also signed cooperative sales and marketing as well as subcontracting agreements offering En Pointe customers more service offerings.
The NASDAQ-listed ENPT has revenues over $340 million with EPGS having a contracted revenue touching $40 million with gross margins of 35 percent, while ADSL market cap as of July 3 was approximately $335 million.
ADSL chairman Nitin Shah said his company has for some time scouting for the right acquisition to gain entry into the US market. “EPGS will give us customers as well as sales and delivery team and field technicians and engineers across the US.”
Tags: bombay stock exchange, business information technology, delivery team, field technicians, global services, gross margins, information technology infrastructure, information technology products, infrastructure management services, lockup, majority interest, market cap, nasdaq, nitin shah, s market, sales and marketing, salesco, service offerings, services ltd, wholly owned subsidiary