Glodyne to buy U.S. firm DecisionOne for $104 mn

MUMBAI, INDIA: Indian IT services firm Glodyne Technoserve Ltd on Wednesday said it has agreed to buy U.S.-based DecisionOne Corp for about $104 million, lifting its shares by 7 per cent.

DecisionOne, which provides technology infrastructure management services firm, had revenue of $200 million and earnings before interest, tax, depreciation and amortisation margin of 8.1 per cent in 2009, Glodyne said in a statement.

The acquisition will be funded through a mix of cash, debt and equity — including preferential sale worth about $23 million to private equity funds, Glodyne said. The deal is expected to close by June-end.

Glodyne will add more than 2,000 people through the purchase, which will help boost the company's presence in the $524-billion global technology infrastructure management services market.

Separately, Glodyne also forecast consolidated revenue of 16.75 billion to 17.20 billion rupees for the fiscal year ending March 2011, subject to the regulatory approvals and closure of its acquisitions — DecisionOne, Broadllyne and Compulink.

For fiscal 2009/10, its revenue stood at 7.2 billion rupees, up 44 per cent. Net profit rose 35 per cent to 1.05 billion rupees.

Glodyne shares, valued at about $342.5 million, eased to close 2.6 percent higher after rising 7 per cent in a firm Mumbai market.