Quintegra reduces PAC buy value
Quintegra Solutions Ltd has brought down the cost of acquisition of PA Corporation (PAC), US, by Rs 50 crore to Rs 148 crore. This was done on renegotiations between the two companies.
In October, the Chennai-based IT company announced the acquisition of PAC for Rs 198 crore ($49 million). The valuation was reduced after taking certain one-time expense into account that impacted the profitability, said Mr Shankarraman Vaidyanathan, CMD, Quintegra.
The American company had a profit of Rs 24 crore on revenue of Rs 244 crore for the year ended December 31, 2006 and is likely to report a profit of Rs 28 crore on revenue of Rs 280 crore for the current year, Mr Vaidyanathan earlier said.
As per the agreement, the acquisition will be effective from April 1, 2007. The accounts of the subsidiary will be reflected in the consolidated financial results of Quintegra for the quarter ended December 31, 2007, according to a communication issued by Quintegra to the BSE.
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