The media learned about the largest takeover in the history of EPAM Systems
American offshore IT company with Belarusian roots EPAM Systems bought the American-Indian software developer Alliance Global Services ( AGS ) for $ 51.3 million. The transaction was closed at the end of 2015, but the amount has not yet been disclosed.
The transaction is fully paid in cash. Including $ 5 million from this amount transferred to the account of a special escrow agent and will be with him for 15 months as a guarantee of the fulfillment of certain obligations. In addition, EPAM can make an additional deferred payment of $ 600 thousand, according to the publication CNews.
Alliance Global Services deals with quality management, software design and development. AGS is focused primarily on customers from the field of medicine, biotechnology, insurance, media and information business, the technology sector.
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The AGS employs 1.15 thousand IT professionals who are located in the offices of the United States and India. Thus, the staff of EPAM specialists will increase significantly.
The parent company of the acquired company is Alliance Consulting Global Holdings. She owns US companies Alliance Global Services, Inc. and Alliance Global Services, LLC and Indian Alliance Global Services IT India.
EPAM has previously said that the acquisition of AGS will help to work more closely with customers in North America and India, as well as expand the network of global development centers of the company at the expense of two new in the Indian cities of Hyderabad and Pune. In addition, the deal will allow EPAM to intensify in the automation of software development processes.
Arkady Dobkin, founder, president, chairman of the board of directors of EPAM Systems, commented on the takeover decision:
EPAM business is divided into several areas:
• IT consulting
• Software development
• Application Integration
• Porting and migration of applications
• Software Testing
• Creation of dedicated development centers based on EPAM Systems
• Developing digital strategies
In connection with this acquisition, the management of EPAM Systems revised its forecast for revenue upwards, expecting it to be at a level not lower than $ 905 million in 2015 against 730 million a year earlier.
The AGS purchase is the largest acquisition in the history of EPAM. Previously, the biggest deal was the purchase of the American company GGA Software Services in June 2014. She develops applications, databases, mathematical modeling and IT support for medical enterprises. The cost of this transaction, including deferred obligations, was $ 45.5 million.
In April 2014, EPAM acquired Hong Kong-based Joint Technology Development ( Jointech ) together with its Chinese and Singaporean daughters, which are developing “strategic technologies” for international companies working in the field of investment banking and asset management. The total amount of the transaction, including deferred obligations in cash and shares, amounted to $ 36.8 million, the company said.
The transaction is fully paid in cash. Including $ 5 million from this amount transferred to the account of a special escrow agent and will be with him for 15 months as a guarantee of the fulfillment of certain obligations. In addition, EPAM can make an additional deferred payment of $ 600 thousand, according to the publication CNews.
Alliance Global Services deals with quality management, software design and development. AGS is focused primarily on customers from the field of medicine, biotechnology, insurance, media and information business, the technology sector.
')
The AGS employs 1.15 thousand IT professionals who are located in the offices of the United States and India. Thus, the staff of EPAM specialists will increase significantly.
The parent company of the acquired company is Alliance Consulting Global Holdings. She owns US companies Alliance Global Services, Inc. and Alliance Global Services, LLC and Indian Alliance Global Services IT India.
EPAM has previously said that the acquisition of AGS will help to work more closely with customers in North America and India, as well as expand the network of global development centers of the company at the expense of two new in the Indian cities of Hyderabad and Pune. In addition, the deal will allow EPAM to intensify in the automation of software development processes.
Arkady Dobkin, founder, president, chairman of the board of directors of EPAM Systems, commented on the takeover decision:
The challenges that our customers face today are becoming increasingly complex and global, and our solutions must meet these new challenges. For Epam, this also means the need to ensure the proper quality of our services and solutions in any region and in any time zone, wherever our customers are. That is why the agreement between Alliance Global Services and Epam is of strategic importance to us. We work in the same industries and share similar production principles, so our customers will benefit from the expansion of our services in the Asia-Pacific region. And we will gain the opportunity to strengthen our position in the market for the development of complex custom software products and platforms.
EPAM business is divided into several areas:
• IT consulting
• Software development
• Application Integration
• Porting and migration of applications
• Software Testing
• Creation of dedicated development centers based on EPAM Systems
• Developing digital strategies
In connection with this acquisition, the management of EPAM Systems revised its forecast for revenue upwards, expecting it to be at a level not lower than $ 905 million in 2015 against 730 million a year earlier.
The AGS purchase is the largest acquisition in the history of EPAM. Previously, the biggest deal was the purchase of the American company GGA Software Services in June 2014. She develops applications, databases, mathematical modeling and IT support for medical enterprises. The cost of this transaction, including deferred obligations, was $ 45.5 million.
In April 2014, EPAM acquired Hong Kong-based Joint Technology Development ( Jointech ) together with its Chinese and Singaporean daughters, which are developing “strategic technologies” for international companies working in the field of investment banking and asset management. The total amount of the transaction, including deferred obligations in cash and shares, amounted to $ 36.8 million, the company said.
Source: https://habr.com/ru/post/299228/
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