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Allied Digital buys EnPointe Global for $30 Mn
By siliconindia
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Thursday, 10 July 2008, 19:30 IST
Bangalore: Allied Digital Services (ADSL) an Indian Enterprise IT infrastructure management services provider has acquired 80.5 percent stake in IT Infrastructure Management / Remote Management Services provider EnPointe Global Services, a subsidiary of EnPointe Technologies (ENPT) with revenues over $340 million.
According to the effective acquisition agreement, ADSL has acquired the IT Infrastructure Managed Services business for an equity valuation of $30 million.
The transaction, which has been solely advised by Singhi Advisors, is a combination of cash and equity swap, entailing upfront cash payment of $10 million and issuance of 745,000 equity shares of ADSL to ENPT, with an additional cash infusion of $4 million in En Pointe Global. This acquisition is expected to strengthen the opportunity pipeline for the company in the U.S. market for its Remote Service offering and also use the acquired entity as a platform for several other inorganic growth initiatives across the globe.
En Pointe Global has contracted revenues of $40 million, with gross margins of 35 percent. The company will receive on going marketing and business support from &350 million En Pointe Technologies, which has an established presence across 44 states in the U.S. and a client base which includes several Fortune 1000 companies across BFSI, healthcare, retail, manufacturing, aviation, transportation sectors.
"This acquisition underlines our commitment to expand geographically in the IT infrastructure management domain. The fact that En Pointe is a well-established company serving the U.S. market, gives us a ready base to expand our presence and leverage on the tremendous cross selling opportunity in Remote Management Services and Managed Security segment in U.S.," said Nitin Shah, Chairman and Managing Director of Allied Digital.
