Calcutta, April 3: Helios & Matheson Information Technology Ltd today announced that it has acquired a controlling stake in the US-based information technology services company, The A Consulting Team Inc, marking the first buyout of a Nasdaq listed company by an Indian firm. The A Consulting Team has been listed on the Nasdaq since 1997.

Chennai-based Helios & Matheson, an information technology solutions provider for the healthcare segment, has informed the Bombay Stock Exchange that it has bought 1024607 equity shares of the US company for $8.75 million in an all cash deal.

The share acquisition represents a 43 per cent controlling stake in The A Consulting Team. As on March 24 this year, the US company has 2382301 outstanding ‘common stock’ shares and has reported a revenue of $26.4 million for financial year 2005-06. Yes Bank has brokered the deal.

The A Consulting Team promoter Shmuel BenTov will, however, have an additional earn-out component in the cash deal, according to a statement by Helios & Matheson. BenTov, who continues to be a director on the board and president cum CEO of the amalgamated company, will earn a percentage of profits the company may earn over the next two years. However, the company didn’t disclose the profit percentage.

“The acquisition will synergise our businesses since both of us are focussed on the healthcare space,” said Helios & Matheson chairman V. Ramachandrian.

“The A Team will strengthen our presence in the East Coast of the US. The region is not only the world’s healthcare hub, it is also the world’s largest market for information technology services and solutions. We are looking for more such acquisitions in the US and Europe,” said G.K. Muralikrishna, managing director of Helios & Matheson.