Ness Technologies (Nasdaq: NSTC)(NASDAQ: NSTC), a provider of IT solutions and services, today announced that it has signed a definitive agreement to acquire Delta Electronic Services, a provider of IT services and solutions in Slovakia.
For the full year 2004, Delta Electronic Services generated revenues of more than $18 million, and was profitable.
The acquisition of Delta Electronic Services, which is privately held, will further expand Ness’ presence in Central and Eastern Europe and complement Ness’ strategic acquisitions of Romanian Radix Company in April 2005 and Czech Efcon in June 2005.
The purchase price, in the all cash transaction, is $7.75 million. In addition, should Delta Electronic Services achieve certain business goals by the end of 2005 and during the first quarter of 2006, Ness will pay an additional amount of up to $3.25 million. The acquisition is expected to close during the third quarter of 2005 and is subject to customary closing conditions.
Delta Electronic Services specializes in ERP and custom enterprise applications and maintains strong partnerships with several leading vendors including SAP, HP and others, serving a highly reputable and long-term customer base mainly in the public and utilities sector. The company has additional operations in the Czech Republic and Germany.
Upon completion of the acquisition, Delta Electronic Services will change its name to Ness Slovakia. Delta Electronic Services CEO Vaclav Kleinwill serve as managing director of Ness Slovakia and will report to Ness Europe president Ivan Hruska.
Published by Globes [online], Israel business news - www.globes.co.il - on Thursday, June 30, 2005