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Atlanta, GA; March 27, 2002 - NIIT, a leading global IT solutions provider today announced the acquisition of Osprey Systems, a privately-held full life cycle SAP solutions provider and SAP Services and Channel Partner headquartered in Charlotte, North Carolina. “
This acquisition was driven by NIIT’s recognition of the size and the growth prospects of the consulting, implementation, integration, maintenance, training and full life cycle solutions around SAP in the United States,” said Mr. Vijay Thadani, CEO of NIIT. “The potential for leveraging our global reach and capacity to provide customers with better, faster and more competitive solutions is very attractive. Our positive experience in providing SAP based solutions in Asia and Japan has strengthened our interest in this segment,” Mr. Thadani added.
According to IDC, 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. The United States and Europe account for 85% 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.
“We are very pleased to partner with NIIT in the United States,” said Allen Brault, senior vice president of small and medium business, SAP America, Inc. “NIIT’s expertise and global resources will significantly increase Osprey’s ability to deliver SAP Smart Business solutions. Our partnership with NIIT will also strengthen SAP’s existing indirect channel and our strategic focus upon the SMB marketplace,” Mr. Brault said.
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. Osprey specializes in SAP implementation, enterprise application integration, technology architecture and management and customer support solutions. The acquisition brings NIIT a very high caliber management team and an experienced technical team of 50 professionals. Osprey will become the SAP solution-focused business division of NIIT in the United States with Mr. Tom H. Wilson, Jr., an accomplished IT executive, as its president. “I am tremendously excited about the opportunity to combine Osprey’s SAP expertise with NIIT’s overall capabilities,” said Mr. Wilson.
Osprey’s revenues in 2001 were over $10 million and its clients include Coats American, Compass Group, SAP, Sulzer, FMC Lithium, Burke Mills and Southern Pump.
“This acquisition makes compelling sense for our clients and our people,” said David Rizzo, CEO and founder of Osprey Systems, Inc. “We can now provide our clients a stronger array of services by leveraging NIIT’s global footprint, strong financial base, scalable infrastructure, SEI CMM Level 5 assessed facilities and rich experience,” said Mr. Rizzo.
With this acquisition, NIIT will jumpstart its entry into the very attractive and demanding SAP solutions-based segment in the United States. The acquisition, structured as an asset purchase through NIIT (USA), Inc., was a cash transaction. The acquisition is expected to generate $35 million in revenues over the next three years. ”
The Osprey acquisition is in line with our planned inorganic growth strategy and expansion into high potential segments,” said Mr. C.N. (Madhu) Madhusudan, NIIT’s President of Strategic Alliances. This is NIIT’s second acquisition in the United States and reflects NIIT’s commitment to inorganic growth as a vehicle for acquiring a greater share of the global software market.
About NIIT
NIIT, a leading Global IT Solutions corporation, operates in 38 countries with Regional Headquarters in USA, Europe, ASEAN and Japan. NIIT software solutions include Custom Software Development and Maintenance, Legacy Modernization and Maintenance, Enterprise Integration, Knowledge Management and e-Learning Solutions. NIIT is strongly focused on quality and received ISO 9001 certification in 1994 in addition to being assessed at Level 5 of SEI-CMM since 1999. NIIT was awarded “The Outsourcing Contract of the Year” by the Financial Times publication, The Banker, UK in December 2001. For more information about NIIT’s full range of services, call toll-free 888-454-NIIT or visit http://www.niitusa.com
About Osprey
Osprey, the SAP division of NIIT, implements, integrates and supports strategic application solutions in manufacturing and distribution industries with a focus on SAP applications. Headquartered in Charlotte, NC, Osprey’s packaged solutions accelerate the pace by which clients realize business value from their technology investments. Osprey’s offerings include enterprise resource planning (ERP) implementation, enterprise application integration, technology architecture and management, hosting, training solutions and customer support solutions. For more information about Osprey’s full range of services, call toll-free 888-9-OSPREY or visit http://www.ospreyUS.com
About DecisionPoint
DecisionPoint is a global leader in M&A advisory services for middle-market technology companies in the services, software, and communication sectors. For additional information on DecisionPoint, visit www.DecisionPointINT.com.
For further information, contact: Doug Ellis, Managing Partner; (704) 916-9070; DEllis@DecisionPointINT.com.