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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.
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