Ramco Systems set to divest its stake in Ramco Infotech

Ramco Systems Ltd has announced that the Board of Directors of the Company at its meeting held on April 12, 2007 has approved the divestment of its 100% stake in its wholly owned subsidiary - Ramco Infotech Solutions Ltd (RITS) to TVS Interconnect Systems Ltd (TVSICS), a wholly owned subsidiary of T V Sundaram Iyengar and Sons Ltd. The Company had already entered into a non binding MoU with TVSICS. The closure of the transaction is subject to satisfactory due diligence, execution of definitive documents and other approvals and regulatory clearances.

The Secure Converged Networking division of the Company was spun off into its 100% subsidiary, RITS, with effect from April 01, 2006. The Company's decision to divest its stake in the subsidiary would help it focus completely on its core business - developing next generation enterprise applications using its revolutionary business process platform.

RITS is a global Secure Convergence Provider that manages and optimizes network performance. RITS's Secure Convergence Solutions form the basic building blocks of the Local and Campus wide Network Infrastructure that integrates diverse network applications like Data, Video and Voice. RITS has over a decade of expertise in implementing mission critical networks and is best positioned to address and meet the challenges of Secure Convergence.

TVSICS over the period has evolved as a trusted organization for providing effective Network Infrastructure solutions in the Telecom, Government and Aviation Sectors. It is engaged in the business of providing wireless solutions, carrier solutions, project management services, networking solutions and manufacturing of telecom related equipment. In its pursuit for accelerated growth, the Company is focusing on the Telecom Infrastructure business and Network Infrastructure Business. The Networking division in the last two years has built expertise to meet the requirement of the Aviation Industry, in building a back bone network for the airports. It has engaged itself in providing solutions to the Airport Community Network (ACN) for new upcoming airports and has emerged as a major Systems integrator. To complement its services in the telecom sector and tap the booming opportunity in the networking infrastructure space the Company's acquisition of RITS provides a strategic fit to enhance its capability and expand its market reach. The acquisition would enable TVSICS to play a major role as a global level Systems integrator for the entire Passive and Active Infrastructure space in Partnership with world leaders in the Networking sector and to offer value added services and Remote Infrastructure Management as key components of TVSICS's growth strategy.

Source : Equity Bulls

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