SSI confirms Aptech buy

All doubts have now been put to rest with SSI officially announcing its plan to pick up a controlling stake in Aptech. As a first step, SSI Ltd has agreed to buy out 27.18 percent promoter stake in Aptech Ltd. The agreed price is Rs 49.75 per share for 4,932,408 shares, amounting to a consideration of Rs 24.54

crore.

Following this, SSI plans to make an open offer to raise its stake to over 50 percent in Aptech Ltd. Finally, the education and training business of SSI Ltd would be integrated with Aptech Ltd. 

Playing on the popularity of the Aptech brand in the country and across the world, SSI Ltd. plans to retain the brand for the combined new entity. Earlier, Aptech had disintegrated its software services division into Hexaware and looks like SSI Ltd is just following suit.

A press statement from SSI confirmed this as it informed that the timing and details of the above sequence of events is subject to necessary approvals from the boards of the two companies and regulatory authorities.

In July 2002, SSI's board had resolved to separate its education and training business and consulting and software services business to streamline operations.

It is learnt that BG Menon, the CEO of SSI Education, would be leaving SSI to pursue other opportunities and Pramod Khera, CEO and MD of Aptech Ltd, would continue as the CEO of the combined entity. 

Together, the Aptech-SSI combine would have 3,208 centers and global revenues of over Rs 420 crore. "This acquisition will consolidate the significant synergies between SSI and Aptech," said Kalpathi S Suresh, Chairman and CEO, SSI Ltd. 

Cyber News Service


(CNS)