CIBER to buy B'lore based Knowledge Systems

BANGALORE: CIBER, Inc., has reached a definitive agreement to acquire Bangalore based Knowledge Systems Pvt Ltd (Knowledge Systems).

The purchase price, including balance sheet net assets of approximately $.5 million, is approximately $2.5 million initially, with an earn-out provision targeted at $.6 million that can be achieved over two years. CIBER expects the transaction to close by June 30, 2005 pending final legal documentation.

“The pending acquisition of 100 percent of Knowledge Systems is expected to more than double our current offshore commitment, size and capabilities,” said CIBER president and CEO Mac Slingerlend.

“The management of Knowledge Systems, headed by HK Katti was critical to this decision. In addition, S Mohan and Sukart Adhikari, who will lead delivery for our new operations, are key to making sure the quality of our delivery of offshore services is on time and up to the standards our international clients require,” he added.

“Our US based 'CIBERsites' domestic development centers initiative is very popular and is scaling up in Oklahoma City and Tampa. Having greater offshore capability is complementary to our 'CIBERsites' initiative and we have found actually helps us keep more jobs in the US than not having it. We are also finding opportunities where we can collaborate offshore, CIBERsites and local delivery resources — a trend that we believe will grow,” Slingerlend added.

Knowledge Systems currently has approximately 175 consultants, 125 of whom are employees and 50 are subcontractors. Its intellectual property includes products like “Oyenok,” which is used by commercial banks to secure major credit card transactions, and eBAS (eBusiness Application Solutions).