Covansys buys PDA Software for $ 16.5 m

BANGALORE: Nasdaq listed Covansys Corporation has acquired US based PDA

Software Services, Inc. (PDA), a wholly owned subsidiary of Selective Insurance

Group Inc.

The net purchase price is approximately $ 16.5 million. PDA's income and

expenses will be fully consolidated into Covansys' financial statements

beginning June 1, 2002.

The company claimed that the acquisition expands Covansys' portfolio of IT

capabilities for state governments and strengthens the company's business

process outsourcing capabilities, particularly in the insurance industry.

PDA, headquartered in Overland Park, Kansas, is the market leader in the

development, implementation and maintenance of systems for states required to

meet federal tracking and reporting mandates of the women, infants and children

(WIC) program. They are the only vendor to offer a unique Web-based product,

called FloodConnect that helps private insurers manage flood insurance business

through the National Flood Insurance Program.

"PDA's capabilities provide Covansys with market leadership in public

sector technology segment and improved business process outsourcing

capabilities," said Covansys, co-chairman and chief executive officer, Ned

C Lautenbach. "PDA's capabilities will complement Covansys' strong set of

solutions in the public sector industry. Clients of both companies will benefit

from the depth of our combined expertise and experience. We welcome PDA's

employees to the Covansys team."

PDA's annual revenues are approximately $18 million and currently employs

approximately 180 full-time professionals providing products, software

consulting, application development and processing services to clients

nationwide. Their services and operations span a broad range of technical

environments including Web application development and EDI/XML data exchange.

Supported industries include federal and state agencies, insurance, agrochemical

and pharmaceutical.

Selective Insurance Group Inc. purchased PDA in December 1998 and the company

continued to function as a separate operation within Selective.

The public sector resources of PDA will become part of Covansys' Public

Sector Practice, which provides consulting to more than 25 states and numerous

local governments and specializes in custom and packaged solutions for public

retirement, health and human services, transportation, labor and justice

services.