R Systems to acquire US-based technical support co for $10.7mln

New Delhi, July 26 (UNI) R Systems International today said it will acquire US-based technical support company WebConverse, for 10.7 million dollars within the next three weeks.

The company has signed a definitive agreement to acquire WebConverse, with US operations in Salt Lake City serving the high technology sector with a special focus on the growing mobile applications market. The estimated value of the transaction will be a maximum of 10.7 million dollars inclusive of earn out payments, a company statement said.

''This acquisition places us in a select group of service providers having onshore and offshore support capabilities. This coupled with the domain expertise WebConverse has in the rapidly growing mobile applications market, strengthens our value proposition to the high technology sector,'' said R Systems CEO Rekhi Singh.

Given the growth potential of the existing WebConverse client base, R Systems expects near term and long term strategic benefits.

WebConverse had achieved revenues of 5.1 million dollars in calendar year 2005.

UNI CS VJ VV1709