Japanese IT services firm NTT Data and Intelligroup, a US-based IT services company, have entered into a merger agreement pursuant to which NTT DATA will acquire Intelligroup for approximately $199m through an all-cash tender offer, in a move to strengthen its ERP presence.
Intelligroup is an enterprise applications systems integrator providing consulting, implementation, testing, application management, infrastructure management, and other IT services primarily related to SAP, Oracle and Microsoft applications for global corporations.
NTT Data, through its wholly-owned subsidiary, Mobius Subsidiary, will make an offer to purchase all outstanding shares of Intelligroup common stock for $4.65 per share, which represents a 21.1% premium to Intelligroup’s average closing stock price over the last three-month period ended June 11, 2010.
NTT Data said that the transaction would give it the access to Intelligroup’s blue-chip client base and specialised knowledge of SAP and Oracle.
In connection with the offer, SB Asia Infrastructure Fund, LP and Venture Tech Assets, which collectively hold approximately 62.9% of Intelligroup’s outstanding common stock, have agreed to tender their shares into the offer, Intelligroup said.
Toru Yamashita, president and CEO of NTT Data, said: "We are extremely pleased to announce our alliance with Intelligroup, a company highly reputable in the ERP business, with top-class employees around the globe.
"We believe that through this alliance, we will gain access to Intelligroup’s global operation network, which will allow us to provide higher quality services in more places and assist clients in the further innovation of their businesses."
