Helios and Matheson acquires controlling stake in AC Team
Chennai, Apr 3 (UNI) Helios and Matheson Information Technology Limited, the leading healthcare focussed IT services company, today announced acquisition of controlling stake in the US-based ''A Consulting Team Inc''(ACT).
Talking to newspersons here, Helios Chairman V Ramachandiran and Managing Director G K Muralikrishnan said the ACT was a 23-year-old firm, listed in Nasdaq since 1997 and posted a topline of 26.4 million USD in 2005. The IT services and solutions company has a strong presence in the healthcare space.
They said it was an all cash deal at USD 8.75 million for 43 per cent controlling stake. Helios acquired 1,024,697 fully diluted shares out of total outstanding 2,382,301 common stock shares in the ACT.
The cash deal has an additional earn out component to the promoter Shumel BenTov, structured as a percentage of profits achieved over a two year period ending March 2008.
Mr Ramachandiran announced that Mr BenTov continues to be a Director on Board and President and CEO of the company.
''We are perhaps the first Indian company to acquire a controlling stake in a listed US Corporation with focus on healthcare space'', he said and added that Helios was expecting revenue to reach 100 million USD.
Helios was also looking at US and european markets for acquisition as well, he added.
Mr Muralikrishna said that this partnership offers clients a compelling value proposition. ''The A Team increases our strength exponentially in the East Coast of the US, which apart from being healthcare hub, is perhaps the world's largest market for IT services and solutions.
Yes Bank was the exclusive strategic and financial advisor for the transaction, he added.
UNI GV KVV 1300