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Keane signs agreement to acquire SignalTree

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DQW Bureau
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Keane Inc has announced that it has signed a definitive merger agreement to acquire SignalTree Solutions Holding, Inc-a privately held US-based corporation with two software development facilities in India and additional operations in the US. 

Approximately 400 of SignalTree's 750 employees are located in India. Under the terms of the merger agreement, Keane will pay cash for all of SignalTree's outstanding stock. The enterprise value of the transaction is approximately $ 62 million or 1.2 times SignalTree's 2001 revenues, which were approximately $ 50 million. 

The acquisition is subject to customary closing conditions, including regulatory approvals, and is anticipated to close during the first quarter of 2002. The transaction is expected to be neutral to Keane's 2002 earnings and accretions in 2003.

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"Many of our customers have expressed a desire to capitalize on the economic and quality advantages of offshore delivery in their applications portfolio strategies," explained Brian Keane, President and CEO, Keane. "At the same time, however, they are indicating a strong preference to gain access to offshore capabilities through a local IT partner to lower risk and maximize flexibility. With the addition of SignalTree, Keane's customers can now move work offshore at their own pace, while maintaining the option to transfer work back to a local delivery solution."

"The addition of SignalTree's proven offshore capabilities and world-class processes will greatly enhance Keane's value proposition and the leadership position of our application outsourcing solution," Keane continued explaining.

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