US-based IT solution provider Ness Technologies on Tuesday announced a merger agreement with Pittsburgh-based software services firm Apar Infotech, which has development centres in Mumbai and Bangalore, in a stock swap valued at $78 million.
The merged firm, Ness Global upon completion of the merger, anticipates its total revenue to grow to $300 million and its workforce by 40 per cent to 3,800 employees, Apar Holdings Corporation president Kushal Desai said.
He said Ness Global would leverage on the offshore business and give the size to compete with IT majors.
The Wolfson group will hold 34 per cent and global private equity firm Warburg Pincus, which had a 46 per cent stake in Apar, will get 34 per cent equity in the merged firm.
Apar group will hold 15 per cent stake and 15 per cent will be held by employees, Desai said.
Ness Global Services will have offices in the US, Europe, Asia and Australia, with operations in 13 countries, a company statement said.
"This merger will enhance our ability to develop and deliver enterprise-wide solutions on a global basis," Ness president and chief executive officer Raviv Zoller said.
Apar Infotech co-founder and CEO Rajeev Srivastava said the merger with Ness will lead to significant expansion in operations, as Ness and Apar's businesses are complimentary.
Apar Infotech has 1,200 professionals and plans to add 600 professionals during the year at Mumbai and Bangalore.
