Date:27/06/2006 URL: http://www.thehindubusinessline.com/2006/06/27/stories/2006062703730400.htm

Back R Systems board okays US buy

Our Bureau

`Clients keen to move business offshore'

New Delhi , June 26

The Board of Directors of R Systems International Ltd, which focuses on software development and IT related services, today approved the acquisition of the entire share capital of a technical support company in the US for a consideration of $10.7 million.

"The US company is into technical helpdesk and had revenues of $5 million last year. The clients of this company are keen to move the business offshore to India, and we expect to finalise the deal in a week or so," a senior company official said but declined to disclose the identity of the company.

The official said that R Systems was in the process of conducting advanced due-diligence for the proposed acquisition and that the board of the target company would meet shortly to take up the issue. "The acquisition cost would be supported from the proceeds of our recent initial public offering (IPO)," the official said.

R Systems currently has three development centres in the country, with a total of about 1,100 engineers. In addition to the Indian centres - located in Noida, Pune and Chennai, the company also has development centres in US and Singapore.