R Systems to Acquire WebConverse, a US based technical support company

R Systems International Ltd has announce that on July 26, 2006 it has signed a definitive agreement to acquire WebConverse, Inc. WebConverse is a technical support company with US operations in Salt Lake City serving the high technology sector with a special focus on the growing mobile applications market. WebConverse achieved revenues of US$ 5.1 million in calendar year 2005. The estimated value of the transaction will be a maximum of $10.7 million inclusive of earn out payments. The acquisition is scheduled to be completed within the next three weeks.

"This acquisition places us in a select group of service providers having onshore & offshore support capabilities", said Rekhi Singh, CEO of the Company. He added "This coupled with the domain expertise WebConverse has in the rapidly growing mobile applications market, strengthens our value proposition to the high technology sector. Also, given the growth potential of the existing WebConverse client base, we see a near term and long term strategic benefit for all our stakeholders. We welcome WebConverse customers and employees to the R Systems family."

Source : Equity Bulls

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