Core Projects to acquire residue 24 pc equity in ECS

Mumbai, June 5 (UNI) IT soluntions major Core Projects and Technologies Ltd (CPTL) has proposed to acquire the balance 24 per cent stake of Enterprise Computing Services Inc (ECS), an Atlanta based software solutions and product company focused on the education vertical.

That apart, the board of CPTL has also approved a proposal to merge Software Technical Services Inc (STS), an Atlanta-based professional services company, with itself, said a CPTL press release.

During Q3 FY06, CPTL had acquired a 76 per cent stake in ECS. In Q4 FY06, CPTL acquired a 100 per cent stake in STS, which is also a preferred IT vendor to Wal-Mart.

The merger of STS with CPTL will increase the top-line of Core India by US 8 million dollars and bottom-line by USD 500,000 for FY07, the release said.

The merged entity will offer comprehensive recruitment services from the offshore centre to US clients, enabling the US clients to reduce recruitment costs.

''The synergies will lead to additional business from existing clients of both companies. And common infrastructural needs will lead to reduction in overheads and therefore increase in net margins,'' says Achyut Godbole, Director, CPTL.

The acquisition of the balance 24 per cent stake of ECS will strengthen CPTL's presence in the Education Vertical in the US.

UNI SN SSS AG2017