Helios & Matheson buys controlling stake in US Co

BANGALORE: Helios & Matheson Information Technology Ltd , healthcare focused IT services company, has acquired 43 per cent controlling stake in The A Consulting Team Inc., NY, USA for 8.75 million in an all-cash deal.

The A Consulting Team Inc. is a 23-year-old US company, listed since 1997, and posted a topline of 26.4 million in 2005.

The IT Services and Solutions company has a strong presence in the healthcare space.

Helios & Matheson acquired 1,024,697 fully diluted shares out of total outstanding 2,382,301 Common Stock shares (as of March 24, 2006) in The A Consulting Team Inc.

The cash deal has an additional earn-out component to the promoter, Shmuel BenTov, structured as a percentage of profits achieved over a two-year period ending March 2008. Shmuel BenTov continues to be a director on the Board and president & CEO of the company.

“We are perhaps the first Indian company to acquire a controlling stake in a listed US corporation with focus on healthcare space.” said V. Ramachandiran, chairman, Helios & Matheson. “In terms of expansion plans, we are expecting revenue to reach 100 mn and are looking at US and European markets for acquisitions as well.”

Helios & Matheson posted revenue of Rs. 159.03 crore and a profit after tax of Rs. 26.85 crore for the nine months ended December 31, 2005.

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