QuintegraUS

Quintegra Solutions Limited, the parent company of QuintegraUS, has acquired US-based PA Corporation (PAC) for $49 Million (Rs. 198 Crores) in an all-cash deal. Quintegra will pay $20 Million upfront and the rest over a period of 3 years, depending on PAC meeting certain performance milestones.

Founded in 2002 and based in Virginia, PAC has 350 employees and has built core competencies in high-end IT consulting and leadership in middle space IT services. PAC has major clients such as Charles Schwab, NASD, Amex, Washington Mutual and Wells Fargo. The management team headed by CEO LeRoy Pingho and President & COO Wally Kulesza will continue in the organization for three more years, driving its business from the US. PAC will be renamed Quintegra and will be integrated with the Indian company.

The deal will help Quintegra gain an entry into high-end consulting business and attract new customers. "The acquisition is part of our strategy to grow inorganically. In this business, you need size to attract Fortune 100 customers. With this deal, we will achieve a milestone of over $100 Million revenue this year." said Shankarraman Vaidyanathan, Chairman and Managing Director of Quintegra.

The acquisition would help Quintegra take its headcount to over 1000 from 600 at present, and also cross a revenue of Rs. 400 Crores ($100 Million) and net profit of Rs. 50 Crores in the year ending March 31 2008. Quintegra has raised a $20 Million loan from SBI for the initial payment and will meet the balance from expected cash flow every year.

As part of its global acquisitions, Quintegra Solutions Limited, a leading software services company headquartered in Chennai, India, has acquired ValleyUS of United States, a software development and consultancy company through 100% stock valued at US$ 9.5 million.

The acquisition of ValleyUS will substantially strengthen Quintegra’s US presence with strong clientele in domains like client-server, legacy, CRM, and e-Commerce.

Commenting on the acquisitions, Mr. Shankarraman Vaidyanathan, Chairman and Managing Director of Quintegra said "The acquisitions are in line with the company’s organic and inorganic strategy to become one of the top IT companies in India with revenue of US $ 100 million by the year 2010".

He said that the company would leverage all the synergies in the line of services of ValleyUS and move up the value chain. ValleyUS registered a revenue of US$ 12 million for the calendar year ended 31 December 2006. It is projected to achieve the revenue target of US$ 18 million and US$ 24 million by 2007-08 and 2008-09 respectively.

Through the acquisition, ValleyUS is poised for fast track growth by offering next-generation IT solutions and professional services leveraging Quintegra's expertise, experience, global presence and financial strength.

Press clipping of the acquisition news as appeared in The Economic Times, India (Thursday, 22nd March 2007)