Polaris clarifies decision to call off deal

By Our Corporate Reporter

CHENNAI, OCT. 4. The decision not to go ahead with the acquisition of Data Inc of the U.S. by Polaris Software, was communicated to the former in the second week of September, according to Mr. Arun Jain, Chairman and Managing Director, Polaris Software. Reacting to media reports that the U.S. firm had sued Polaris in a New Jersey court for the latter's decision to call off the proposed acquisition, he said an MoU was signed on May 23 and Polaris took a decision to announce the signing of the MoU even as it made it clear that a comprehensive agreement would be considered only after the due diligence process was completed.

He said KPMG which was hired to perform due diligence of Data Inc, had completed the task effectively. However, he declined to share the findings of the due diligence report saying that Polaris had a confidentiality agreement with KPMG. Mr. Jain said Data Inc had agreed to the decision of Polaris to call off the proposed acquisition after due diligence and it was agreed in principle to make a formal announcement in this regard when Mr. Arun Verma, President of Data Inc. visited India next.

Mr. Jain said, he came to know that Data Inc had filed a suit against Polaris in a New Jersey court on September 26 only through the media.

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Section  : Business
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