IT services provider Quintegra Solutions on Thursday announced the acquisition of US-based PA Corporation for a consideration of $49 million (about Rs 198 crore). The company will pay $20 million upfront and the rest will be paid over a period of three years.
Shankarraman Vaidyanathan, chairman and managing director, Quintegra, said, the company will raise the upfront payment through debt, funded by State Bank of India. For the remaining payment, PAC is bound to report revenue of at least $ 91 million (about Rs 360 crore) for next year and $113 million (about Rs 447 crore) for the third year.
With this acquisition, Quintegra is poised to earn revenues in excess of Rs 400 crore and profit of about Rs 50 crore for the financial year ending March 31, 2008 as against Rs 75 crore revenue for the previous year ended March 31, 2007 and profit Rs 7 crore. This acquisition also takes Quintegra’s global headcount to over 1,000 professionals, he added.
PAC brings core competencies in high-end IT consulting and leadership in middle-space IT services including enterprise application services, date architecture and data validation and audit compliance documentation.
This transaction provides Quintegra with these value adding capabilities and a base of clients (including Fortune 500 organizations) predominantly in the BFSI, mortgage and brokerage space, such as Charles Schwab, Fannie Mae, NASD, Amex, Freddie Mac, Washington Mutual and Wells Fargo.
LeRoy Pingho, chief executive officer, PAC, said, the step forward would be to take advantage of Quintegra’s infrastructure and recruitment facilities in India. Earlier, the company did not have an alliance with any Indian company but now can include offshoring facilities in its offerings, he added.