R Systems to pocket WebConverse

MUMBAI: Noida-based software product development company, R Systems International, has said it will acquire the US-based WebConverse for over $10.7 m (approximately Rs 49 crore). R Systems would be pay about $1.1m in cash and the balance would be through the earn outs from WebConverse. The company had raised close to Rs 100 crore in a public offering earlier this year, said Rekhi Singh, CEO, R Systems.

The acquisition is scheduled to be completed within the next three weeks, the company informed the BSE. The company signed a definitive agreement on Friday to acquire WebConverse, a technical support company with US operations and serving the technology sector with focus on growing mobile applications market, it added.

“This acquisition allows us to have both onshore and offshore support capabilities. This coupled with the domain expertise WebConverse has in the rapidly growing mobile applications market, strengthens our value proposition to the high technology sector. Our company provides end to end solutions for the entire lifecycle of product development and WebConverse’s services would fit into the last stage of this lifecycle,” Mr Singh said.

“The combination of R Systems’ software development expertise and WebConverse’s experience in supporting sophisticated enterprise applications will create a powerful end to end solution for our customers,” said Peter Newell, CEO of WebConverse in a statement. “Our multi-shore delivery model will enable us to seamlessly match our resources to our customers needs,” he added speaking about the deal.

R Systems has reported a net profit of Rs 5.3 crore for the quarter ended June 30, ‘06, a 61.2% growth from Rs 3.3 crore in the previous quarter ended March 31, ‘06.