Kanbay to buy U.S. consulting firm

By agencies   |   Thursday, 16 February 2006, 08:00 Hrs
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PUNE: Pune based mid-tier IT serices company Kanbay that is focused on the financial services industry, has announced that it has signed a definitive agreement to acquire U.S. based Adjoined Consulting Inc.

Cyprian D'Souza, Managing Director, India and Director (Operations) for Europe, Asia-Pacific, and Emerging Markets, said that the company was acquiring the privately held Adjoined Consulting, a mid-sized provider of strategic and operational consulting, technology integration and outsourcing services to Global 2000 clients.

The purchase price of approximately $165 million includes the exchange of all outstanding stock of Adjoined for approximately $95.7 million in cash and approximately $69.3 million in Kanbay common stock.

He also said that the transaction had been approved by both boards and Adjoined's stockholders, adding that the acquisition was expected to close by mid-March following standard regulatory approvals and the satisfaction of other customary closing conditions.

D’Souza also added that in conjunction with this transaction, Kanbay had secured a $125-million debt facility, consisting of a $50-million term loan and a $75-million revolving loan.

"The size and structure of the debt facility is designed to ensure ample liquidity. Given the cash generating capabilities of Kanbay, we are comfortable with the business's ability to support this level of debt.”

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