Aptech to acquire 70% in Synergetics Information Technology Services India Pvt Ltd

Aptech Ltd has announced that the Board of Directors of the Company at its meeting held on October 12, 2006, has granted their consent for acquisition by the Company of 70 % Equity stake in "Synergetics Information Technology Services (India) Pvt Ltd" ("Synergetics"), a Company engaged in high end IT training vertical business.

The Company has been looking at prospects for reinforcing the IT Training vertical and accordingly, had identified this target company viz., Synergetics, which is a reputed company executing training contracts in the IT Vertical segment for the past over 10 years.

After detailed discussions and consequent upon the approval of the Board, the Company proposes to conclude the execution of the Share Purchase Agreement and Shareholders Agreement ("agreements") shortly with the target Company.

The purchase consideration negotiated for a 70% equity stake in Synergetics has been determined at Rs 35 million which shall be discharged forthwith upon execution of the aforesaid agreements.

Further, the Company proposes to infuse additional capital of Rs 50 million in Synergetics within the next 24 months by way of growth capital for strengthening their business prospects and as a result of which the Company's equity shareholding in Synergetics would stand increased to 85%.

With this equity takeover, Synergetics shall become a subsidiary of the Company and the results for the quarter ending December 2006 of the Company would reflect the business results of Synergetics for the corresponding period from the effective date of takeover uptil December 31, 2006 on a consolidated basis in the Aptech Group.

Source : Equity Bulls

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