NIIT acquires Osprey for $3 m

IRIS

NIIT, a leading global IT solutions provider, announced acquisition of
US-based Osprey Systems, a privately held full life cycle SAP solutions provider
for $3 million in all cash deal. The acquisition is expected to generate $35
million revenues over the next three years. With this acquisition, NIIT would
jumpstart its entry into the lucrative and demanding SAP solutions-based segment
in US.

NIIT CEO Vijay Thandani said, `This acquisition was driven by NIIT`s
recognition of the size and the growth prospects of the consulting,
implementation, integration, training and full life cycle solutions around SAP
in the US. The potential for leveraging our global reach and capacity to provide
customers with better, faster and more competitive solutions is attractive. Our
positive experience in providing SAP-based solutions in Asia and Japan has
strengthened our interest in this segment`.

Osprey would become the SAP solution-focused business division of NIIT in the
US with Tom H Wilson, Jr, an accomplished IT executive, as its president. Osprey
has been an SAP services and channel partner since 1995 and has implemented many
full life cycle SAP solutions in addition to being a qualified vertical
solutions provider of SAP. The acquisition brings NIIT a high calibre management
team and an experienced technical team of 50 professionals.

According to a leading market researcher, the global market for IT services
in packaged software support and installation was $48 billion in 2001. It is
expected to grow to $86.6 billion by 2005. US and Europe account for 85 per cent
of this market. SAP is a dominant product provider and has been expanding its
product offerings significantly to address a wider segment of customers.
Services around SAP solutions offer strong prospects for growth.

Osprey Systems is headquartered in Charlotte, North Carolina, USA and is
engaged in SAP implementation and consulting business. It caters to small and
medium enterprise segment and has a client list of around 30 companies including
Coats American, Compass Group, Sulzer, SAP, FMC Lithium, Burke Mills and
Southern Pump. The company has recorded revenue of $10 million in the year 2001.
It`s offerings include enterprise resource planning (ERP) implementation,
enterprise application integration, technology architecture and management,
hosting, training solutions and customer support solutions.

Recently, NIIT acquired the content and implementation business of
Click2learn, US-based learning management solution provider. The deal was valued
at $3 million with annual revenue size of $8 million. NIIT`s global reach will
help to serve Click2learn`s strong customer base of 300 odd clients, of which 50
are amongst Fortune 100 companies.

Th company`s acquisition policy is primarily focused on acquiring the client
base in the US market in select practices and verticals. NIIT has decided to
focus on three business practices: enterprise integration, legacy maintenance
and customised software development apart from building three verticals:
banking, insurance and finance (FIP), transportation and retail. The company
would continue its efforts for inorganic growth in these areas.

On stand alone basis, in the quarter ended December 2001, NIIT`s income from
operations stood at Rs 108.73 crore (Rs 155.81 crore in the quarter ended
December 2000), while net profit after tax stood at Rs 3.46 crore (Rs 29.83
crore). For the year ended Oct-Sept 2001, the company`s income from operations
stood at Rs 687.51 crore (Rs 1237.10 crore in year ended Oct-Sept 2000) and net
profit after tax and extraordinary items stood at Rs 95.96 crore (Rs 224.13
crore).