R Systems & Aisel Corporation announce plans for Strategic Alliance to serve Japanese Market

R Systems International Ltd on October 31, 2006 has announced that it signed a letter of intent with Aisel Corporation, an independent systems development and business solutions provider, in Tokyo, Japan. The proposed transaction would involve the Company taking up to 15% equity stake in Aisel and Aisel taking up to 5% equity stake in the Company through issuance of new shares at Rs 250 per share, subject to the applicable pricing guidelines. In addition the proposed transaction includes both parties collaborating exclusively for delivery of certain services to each others customers. The Company would serve Aisel for all its offshore software development needs and Aisel would serve the Company with onsite project management and coordination needs. The transaction is subject to definitive agreements and regulatory and other corporate approvals and it is estimated that it will take approximately 4 months to complete all documentation and close.

"Our proposed strategic alliance will help R Systems and Aisel to complement our respective strengths and capabilities to offer integrated seamless global delivery to our clients in Japan," said Rekhi Singh, CEO of the Company. "Both R Systems and Aisel customers will benefit from this unique strategic alliance as it will provide them with the benefits of a blended, onshore & offshore delivery model and reduce the cost of ownership of solutions. We look forward to a nurturing a long and deep relationship with the Aisel team."

Source : Equity Bulls

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