FI Group Plc, the UK software services group, is to buy the Indian computer services company IIS Infortech for 22m pounds in cash. FI will also pay the five founder directors up to 2.7m pounds in performance-related bonuses. The deal is viewed by FI an inexpensive way to expand, given Indian expertise in software and the fact that wages are a third of UK levels. IIS is heavily involved in the UK market, particularly in updating software to overcome year 2000 problems. Under the deal, FI is buying 76% of the shares from the company’s founders and is making an offer for the remaining 24%, which are quoted on the Bombay over-the-counter exchange.
