Date:15/07/2005 URL: http://www.thehindubusinessline.com/2005/07/15/stories/2005071502920100.htm

Back Gecis to acquire US-based Creditek

Our Bureau

Creditek is a leader in revenues cycle management, order-to-cash and business process outsourcing solutions.

New Delhi , July 14

IN its first acquisition since GE restructured the company in December 2004, Gecis (formerly GE Capital International Services), on Thursday, announced that it is acquiring the New Jersey-based Creditek Corporation, which has strength in order-to-cash cycle and enterprise receivables management.

"Creditek's product expertise and attractive client base offers numerous cross sell opportunities for us. We are very impressed with the strong management team and believe that Gecis and Creditek can work together to better penetrate the US market as well as bolster the order-to-cash side of our service offerings. In addition, this expands our on-shore presence in the US and will help us better serve our customers," Mr Pramod Bhasin, President and CEO, Gecis Global, said here.

Though he declined to disclose the size of the deal, Mr Bhasin said it would be met from Gecis' internal cash flow.

However, according to industry analysts, the size of the deal was below the one-time revenue of the company.

Withsales of $20.4 million in 2004 and about 300 associates in Wilkes Barre, PA, Nashville, TN and Parsippany, NJ Creditek would operate as an independent subsidiary of Gecis. Portico Capital Securities of Greenwich advised Creditek on the transaction which is expected to close within 30 days.

Founded in 1982, Creditek is a leader in revenues cycle management, order-to-cash and business process outsourcing (BPO) solutions for major corporations and healthcare companies.

Commenting on the deal, the Creditek CEO, Mr Regina Paolillo, said, "We could not have asked for a better partnership for our clients and associates. Gecis immediately expands its portfolio of BPO services with Creditek's specialised revenue-cycle platforms, adds to its US-based management talent, and extends its global delivery footprint with US-based operations.

"Creditek significantly enhances its financial and operational wherewithal with Gecis' brand, channel, global-delivery capability and rich process experience."