Allied Digital acquires US-based IT firm for USD 30 mn

Mumbai, July 10 (UNI) The Indian IT infrastructure management services provider, Allied Digital Services Ltd, has acquired 80.5 per cent stake in a subsidiary of US-based Enpointe Technologies Inc for USD 30 million.

Allied has acquired majority stake in the latter's IT infrastructure management service business wing. The transaction of the deal comprises a cash payment of USD 10 million and about USD 14 million through issuance of 7.5 lakh equity shares of Allied to EnPointe, apart from additional cash infusion of USD four million in EnPointe Global, Allied Digital Chairman and Managing Director Nitin Shah told reporters here today.

He said about 40 per cent of acquisition cost will be funded by cash and the remaining will be through an equity swap, resulting in a four per cent dilution in equity of Allied Digital.

With this acquisition, the Company would get business of about USD 40 million, with a gross margins of 35 per cent, in this fiscal year, Mr Shah added.

UNI PP RN AG1534