R Systems to acquire WebConverse, a US based technical support co

Mumbai, July 26 (UNI) R Systems International Ltd today signed a definitive agreement to acquire WebConverse Inc, a technical support company with US operations in Salt Lake City serving the high technology sector with a special focus on the growing mobile applications market.

Informing the BSE, the company said the acquisition of WebConverse - with revenues of USD 5.1 million in calendar year 2005 - is scheduled to be completed within the next three weeks. The estimated value of the transaction will be a maximum of USD 10.7 million inclusive of earn out payments.

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

Also, Mr Singh continued, given the growth potential of the existing WebConverse client base, the company sees a near term and long term strategic benefit for all our stakeholders.

UNI SN MJ AW1625