Chennai, Tamil Nadu, India, March 04, 2005 -- The
purchase price consists of a $5 million closing payment, subject to certain
adjustments, plus contingent payments of up to $7 million, payable upon the
achievement of certain performance targets. The acquisition is expected to be
modestly accretive to Kanbay this fiscal year. Further comments regarding the
transaction will be provided in Kanbay's earnings call anticipated in April
2005.
Accurum employs 180 people worldwide, bringing the total number of Kanbay
associates to nearly 4,000. Accurum operates offices in the United States and
the United Kingdom and an offshore solution center in Chennai, India. Its 2004
revenues were approximately $12 million.
“Accurum brings a wealth of high-end domain expertise that complements Kanbay's
focus on IT services for the financial services industry,” said Raymond Spencer,
Chairman and CEO of Kanbay. “Accurum's leadership in technology solutions in the
capital markets sector strengthens Kanbay's practice and adds to our breadth and
depth of service for our current clients. Accurum also holds close relationships
and a strong track record with some of the most important capital markets
clients in the world.”
Accurum offers technology solutions for capital markets firms within the front
and middle office, including Sales and Trading, Risk Management and Research.
Accurum has business and technology experience in the areas of Fixed Income,
Equities, Credit and Derivatives. Through its onsite, offsite and offshore
delivery model, Accurum provides application development, enterprise application
integration, web services, data warehousing and quality assurance and testing,
with deep domain expertise in the processes that drive the capital markets
industry.
Speaking about the acquisition, Venkat Vallabhaneni, CEO of Accurum, said, “This
is a beneficial situation for both companies. Kanbay is a highly focused player
in the IT space for financial services and Accurum's strength in capital markets
complements Kanbay's existing expertise. We look forward to helping Kanbay grow
its capital markets practice and adding scale to our own operations."
Accurum will be operated as a wholly-owned subsidiary of Kanbay, and Mr.
Vallabhaneni will continue as its CEO.
About Kanbay International, Inc.
Founded in 1989, Kanbay International, Inc. (NASDAQ: KBAY) is a global IT
services firm focused on the financial services industry. With nearly 4,000
associates, Kanbay provides its services primarily to banks, credit service
providers, insurance companies, and capital markets firms. The company uses a
global delivery model to provide application development, maintenance and
support, software package selection and integration, business process and
technology advice, network and system security, and specialized services. Kanbay
is a CMM Level 5 assessed company headquartered in greater Chicago with offices
in the U.S., Canada, U.K., Australia, Hong Kong, Japan, Singapore and India.
Forward-Looking Statements
This release contains statements relating to projections or future results.
These statements are forward-looking statements under the federal securities
laws. We can make no assurance that any projections or future results discussed
in these statements will be achieved. Any forward-looking statements represent
our views only as of the date of this press release, and such forward-looking
statements should not be relied upon as representing our views as of any
subsequent date. These statements are subject to a variety of risks and
uncertainties that could cause our actual results to differ materially from the
statements contained in this release. For a discussion of important factors that
could affect our actual results, please refer to our SEC filings, including the
"Risk Factors" section of the prospectus we recently filed with the SEC.
Media contact details
Sangeeta Sundaram,
Accurum Inc,
+91 (44) 520 97400 ,
sangeeta.sundaram@accurum.com
Anu Lakshman,
IPAN,
+91 (44) 2821 7294,
anu@ipan.com
News Source: Business Wire India