Friday, July 11, 2008

ALLIED DIGITAL ACQUIRES US FIRM FOR USD 30 MILLION

Hindu

IT services provider Allied Digital on Thursday said it has acquired US-based EnPointe Global Services for $ US 30 million (about Rs 129 crore).

The company has acquired 80.5 percent stake in infrastructure management arm of Nasdaq listed EnPointe Technologies (EnPT) for USD 30 million, Allied Digital said in a filing to the Bombay Stock Exchange.

The acquisition would be made effective via a mix of cash payment of US $ 10 million in the first phase and equity swap.

The transaction would involve "... issuance of 7.45 lakh shares of Allied Digital to ENPT, with an additional cash infusion of USD 4 million to EnPointe Global," the filing added.

"The acquisition gives us a ready base to expand our presence and leverage on the tremendous cross selling opportunity in Remote Management Services and Managed Security segment in the US," Allied Digital Chairman and MD Nitin Shah said.

The company expects the acquisition to strengthen its presence in the US market. "The acquisition is revenue and earnings accretive to Allied Digital," it said.

The acquired entity would be used as a platform for several other inorganic growth initiatives across the globe, the filing added.

Shares of Allied Digital were trading at Rs 882.15, up 6.08 percent in the morning trade on the BSE.

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