Patni Computer acquires US telecom IT player
By Our Corporate Bureau | 05 Nov 2004
Chennai: Software services company, Patni Computer Systems Limited has acquired the US-based Cymbal Corporaton for $68 million. The acquisition paves way for Patni''s entry to telecom services vertical.
According to terms of the deal, Patni has paid $35 million and the remainder will be paid over three years based on revenues and profits. Cymbal will be integrated into Patni Computer and function as a business unit headed by Neeraj Gupta, former chief executive of Cymbal Corporation.
Through this transaction, Patni Computer acquires all assets of Cymbal Corporation including its employee- and consultant- base of over 500. The acquisition also provides the Indian company access to 14 key strategic communication service provider accounts including Virgin Mobile, Hutchison Telecom and Comcast.
The acquisition would be EBIDTA positive and would help in reducing Patni Computer''s concentration of revenues from its top customers while increasing its number of million-dollar accounts.
According to the company, the acquisition is expected to add over 8 per cent sequential revenue growth for the company in the quarter ending December 31st, 2004.
