Cambridge Technology Enterprises acquires CellExchange

Hyderabad, June 18 (ANI/Business Wire India): Cambridge Technology Enterprises today announced completion of all formalities related to the acquisition of CellExchange, Inc, a Cambridge based system integrator company, for a total deal size of 15 million dollars in guaranteed cash and performance based earn-outs.

Cambridge Technology Enterprises is a global IT services provider a leading provider of SOA based solutions and Enterprise Transformation applications to mid size enterprises and mid size business units of Global 2000 enterprises.

This is the fourth and the largest acquisition in the year FY08, starting with ComCreation, Inc. in first quarter of FY08, Reilly and Associates in second quarter of FY08 and Q-Soft Systems and Solutions in third quarter of FY08.

The merits of the CellExchange transaction are effective 1st of January 2008. CellExchange realized INR 80 Crores revenue in year 2007.

The acquisition is expected to bring in additional INR 90 Crores revenue in FY09. CTE has already clocked INR 45.68 Crores during first nine months of FY08 (as on 31-Dec-2007) against INR 23.40 Crores revenue for the entire FY07.

The acquisition will boost CTE's revenue run rate to approximately million (INR 160 Crores) and also will increase its head count globally to over 600.

Incorporated in 2000 in Cambridge, MA, CellExchange provides system integration IT solutions for US Federal and US Department of Defense (DoD) customers.

CellExchange focuses on transformational efforts in Human Capital Management, Supply Chain Management, and Information Sharing.

Having served the US Navy, the US Air Force, the US Army, and the Joint Chiefs of Staff, as its distinguished customers, the company uses standards-based technologies and employs a disciplined collaborative process to enable rapid incremental delivery.

CellExchange is an active member of the SOA Consortium, Homeland Security and Defense Business Council.

In addition to the revenue run-rate and head count enhancement, this acquisition will bring in many strategic advantages to CTE's portfolio by enhancing its offerings in the government sector.

The acquisition will help CTE further strengthen its expertise in SOA frameworks and Rapid Application Development (RAD).

Bhaskar Panigrahi, CEO, Cambridge Technology Enterprises said, "I look forward to this relationship bringing tremendous synergy and benefits to both the organizations. CellExchange's solutions and competency complement our existing service offerings and will enable us to serve our customers on a more comprehensive level. This would also allow better resource utilization and improving profitability of the combined company. We have been extremely successful in realizing synergies with our previous acquisitions and reaping the benefits now."

"CellExchange is already a leading provider of system integration IT solutions for US Federal and US Department of Defense (DoD) customers. With CTE and CellExchange having the same execution model, we will leverage our expertise to win larger contracts in the commercial sector. At the same time, our government customers can leverage our expertise and solutions in commercial customer, enabling to bring systematic innovation to public sector enterprises." said Krishna Nangegadda, President, CellExchange.

ANI