Sonata Software to acquire majority stake in TUI InfoTec

Sonata Software Ltd on September 27, 2006 has announced that the Company has signed an Agreement with TUI AG, Europe's leading tourism and shipping group, to acquire 50.1% stake in TUI InfoTec, an IT Company headquartered in Hanover, Germany for a consideration of Euro 18 million in an all cash transaction. The balance 49.9% stake in TUI InfoTec would be held by TUI AG. In 2005, TUI InfoTec posted revenues of around Euro 130 million. The company has more than 400 IT professionals with deep domain expertise.

This transaction will enable the Company to achieve its strategic objective of entering new geographies in the European market.

Leveraging on Company's offshore capabilities, TUI InfoTec will offer IT Infrastructure Management services and IT software services to the European market and will remain the preferred IT supplier to the TUI group. The Company is the strategic offshore services provider for TUI.

TUI AG, with revenues of around Euro 20 billion (approx Rs 120,000 Crore), is listed on the Frankfurt Stock Exchange and is among the companies that constitute the German blue chip stock market index DAX, along with other companies like Adidas, BASF, Bayer, BMW, Deutsche Bank, Siemens, DaimlerChrysler, and Volkswagen.

Mr. B. Ramaswamy, President & Managing Director, of the Company said, "This innovative partnership combines the strengths of the two companies : Sonata's 1700 strong India development facility with a good track record and TUI InfoTec's 400+ onshore German IT professionals with extensive skills in Infrastructure Management and mission-critical software applications. This provides a compelling value proposition for European customers looking for a proven, low risk, cost-effective and high quality outsourcing option."

Source : Equity Bulls

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