R Systems International completes acquisition of WebConverse, US

R Systems International Ltd has announced that it has completed the acquisition of WebConverse. WebConverse is a technical support company with operations in Salt Lake City, US serving the high technology sector with special focus on the growing mobile applications market. WebConverse achieved revenues of US$ 5.1 million in calendar year 2005. The estimated value of the transaction will be a maximum of $ 10.7 million inclusive of earn out payments.

"We are pleased to announce the completion of this acquisition and we are very delighted to welcome the employees and clients of WebConverse into the R Systems family," said Rekhi Singh, CEO of the Company. He added, "The combination strengthens our capability in providing multi-shore technical support services and provides a solid foundation to provide end-to-end solutions and services to the high technology sector."

Further the Company has informed that pursuant to approval of the Board of Directors of the Company and signing of the share purchase agreement for acquisition of entire share capital of WebConverse, Inc a technical support company, based in the USA, the acquisition of the entire share capital of WebConverse, Inc has been completed August 25, 2006.

From August 25, 2006, onwards WebConverse, Inc, USA is the wholly owned subsidiary of the Company.

Source : Equity Bulls

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