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iGate snaps up infotech business of Ideaspace

Bangalore, Oct. 20 (PTI): iGate Global Solutions has acquired the IT services business of Bangalore-based Ideaspace Solutions for Rs 7.67 crore as well as a 6 per cent stake in US-based consulting and research firm Concours for about $1.8 million.

The acquisition of Ideaspace’s business and assets will add to iGate Global over 170 employees, many of whom are specialists in banking technology and operations, company officials said at a press conference here.

With this move, the company added ING Vysya Bank as a client in IT services.

Phaneesh Murthy, the CEO of iGate Global, said the transaction with the Concours group, which has annual revenues of around $40 million, involved investment of approximately $1.8 million into Concours, of which $1 lakh has already been invested.

iGate Global, a fully integrated technology and operations firm with a global services model, is a subsidiary of US-based, Nasdaq-listed iGate Corporation.

iGate Global had 3159 employees as on September 30, 2003, and is present in 12 countries.

Murthy said the company would shift around 45 jobs from the US to India.

Meanwhile, iGate Global said its revenues for the second quarter of 2003-04 increased 61.3 per cent to Rs 145.5 crore from Rs 90.2 crore in the same period of the previous year, but net profit declined 90.1 per cent to Rs 64 lakh from Rs 6.49 crore.

The company said efforts towards integration with Quintant, in which it took controlling interest during the second quarter, were proceeding as planned.

On the impact of the acquisition on the company, Murthy said the net income would be under pressure for the next two quarters as a result of acquisition, restructuring and higher expenses without corresponding revenue.

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