BANGALORE, INDIA: Blue Coat Systems Inc., a provider of application delivery networking solutions, announced that it is in the final stages of establishing S7 Software Solutions Pvt. Ltd as its fifth development centre and the first outside the US.

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Blue Coat had acquired 83 per cent stake now in S7 and would soon acquire the remaining 17 per cent equity after negotiating with Indian regulators and minority shareholders. The entire deal would cost $5.25 million.

Blue Coat obtained majority interest in S7 Software, formerly an IT research and development firm, on January 25, 2010. Blue Coat had been in the process of acquiring the highly-regarded research and development firm since it announced entry into a stock purchase agreement with stockholders of S7 Software on November 5, 2009.

Brian Ball, senior vice president and general manager, Blue Coat Systems, said: "With four fully integrated development centers, we can accelerate our pace of innovation and expand our application delivery network solution portfolio to better deliver business value to our customers and increase the return on investment to our stockholders. Our new Bangalore development center builds on the expertise and established momentum of S7 Software to immediately advance our development work."

The new Bangalore centre will focus on management, reporting and client software products. Blue Coat plans to expand the centre by hiring additional top engineering talent over the next several months. Blue Coat intends to acquire the remaining shares of S7 Software upon the receipt of regulatory approval from the Indian government.