Wednesday, November 09, 2005

IBM to Acquire Indian NetSol

IBM has announced its decision to acquire NetSol, an Indian IT services firm. The deal is expected to be between USD 75 million to USD 100 million. After the closing of the deal, which is expected in a month, NetSol will function as a subsidiary of IBM.

NetSol has a 1,400 strong workforce in India and supplies both IT infrastructure hardware and IT management services. The company is expected to grow at around 30 percent in the current fiscal year.

The acquisition will enable IBM, which is increasingly outsourcing its mid-market infrastructure services operations to India, to better service its data center and on-demand services clientele. The acquisition will also help IBM to consolidate its position in the wake of increased Indian domestic demand for infrastructure services.

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