| The consideration for this transaction is about US$45mn, including escrows and earn-outs. Rolta expects this deal to be immediately accretive | |
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Rolta India Ltd. on Wednesday announced the acquisition of Broech Corporation, doing business as “TUSC”, an IT consulting company specialising in ERP applications as well as Database and Business Intelligence solutions based on Oracle technologies. The consideration for this transaction is about US$45mn, including escrows and earn-outs. Rolta expects this transaction to be immediately accretive to shareholder value in the current fiscal year ending in June 2008. As a part of its systematic and aggressive growth plans, the company has adopted a clear acquisition strategy of taking over companies that provide a synergetic mix of Technology and IPR, enabling it to move up the value chain for addressing complementary markets, Rolta said. This is the second acquisition by Rolta in a span of six months and will bring a strong portfolio of products and customers; improved access to complementary markets and industry service lines; and strengthen its global delivery mode; while continuing to leverage its existing core competencies in the GeoSpatial and Engineering domains. TUSC is headquartered in Chicago, with excellence centers and offices across the US that are staffed by over 160 consultants. Established in 1988, TUSC has served over 2000 customers in diverse sectors like Utilities, Energy, Engineering, Manufacturing, Finance, Insurance, Retail, Government, Healthcare, Services, Transportation, and Technology. Over 50% of TUSC's revenues are generated from repeat business. TUSC is a profitable company and its 2007 revenues were in excess of US$48mn, with a CAGR of more than 30% over the past four years. The company has been listed twice on the '500 Fastest Growing Private Companies' list in the US. |
Source: India Infoline