Kanbay to acquire Adjoined

PUNE: Kanbay, a global IT services firm focused on the financial services industry, reported strong financial results for its fourth quarter and full year ended December 31, and announced that it has signed a definitive agreement to acquire Adjoined Consulting, Inc.

The purchase price of approximately $165 million includes the exchange of all outstanding stock of Adjoined for approximately $95.7 million in cash and approximately $ 69.3 million in Kanbay common stock.

Revenue of Kanbay for the full year was $230.5million, a 26 % increase over 2004 and revenue from third parties in 2005 increased 48% YoY, excluding the products business divestiture.

While addressing a press conference Cyprian D'Souza, managing director India, Director Operations for Europe, Asia-Pacific and the Emerging Markets, said that Kanbay's global learning center at Pune would be inaugurated in July 2006 and the Hyderabad campus would be inaugurated in April, this year.

He also said that the companies core business would remain strong and this acquisition would enable Kanbay to expand in a new vertical i.e. the industrial and consumer product.

He added that India would remain the main focus of Kanbay as 55 % of its revenue is from off shore, which creates tremendous growth potential for India. Further he said that recruitment would continue and there would be no watertight compartmentalization of its different solution centers located in Pune, Chennai or Hyderabad.