Glodyne to buy US firm DecisionOne Corp for $104 million
12 May 2010
Indian IT services firm Glodyne Technoserve Ltd said on Wednesday it had agreed to buy US-based DecisionOne Corp for a consideration of $104 million, through a combination of cash, debt and equity.
The acquisition includes preferential sale worth about $23 million to private equity funds, Glodyne said. The deal is set to close by June-end.
DecisionOne provides technology infrastructure management services, and had revenue of $200 million and earnings before interest, tax, depreciation and amortisation margin of 8.1 per cent in 2009, the company said in a statement.
The purchase will add 2,000 people to Glodyne's workforce which would help boost the company's presence in the $524-billion global technology infrastructure management services market.
Separately, Glodyne has also projected revenue of Rs1,675 croreto Rs1,720 crore for the fiscal ending March 2011, subject to regulatory approvals and closure of its acquisitions--DecisionOne, Broadllyne and Compulink.
For fiscal 2009-10, its revenue stood at Rs7.2 billion up 44 per cent while net profit surged 35 per cent to Rs1.05 billion.
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