Ciber defers Iteamic buy

Ciber Inc, the US-based a global system integra-tion consultancy firm, has put on hold its move to acquire Bangalore-based Iteamic Pvt Ltd. During mid of September, Ciber signed a letter of intent to acquire Iteamic for an undisclosed sum through a stock transaction.

In a statement today, Ciber said: “As for acquisitions, the company has announced the pending purchase of Iteamic Pvt Ltd of Bangalore, India. It is also working on a business combination in Europe. Both are subject to executing definitive agreements, among other things.

The company’s bank credit agreement requires at this point that the company issue shares as consideration for any acquisition. While the bank group has consented to these business combinations, the company is not presently willing to issue the equity given the state of recent equity market turm-oil; hence, both deals remain pending.”

The Bangalore-based firm has over 200 employees and expects to do $7-8 million in revenue in this fiscal year. Iteamic was formed in 2003 and last year raised Rs 5 crore from Canbank Venture Capital Fund Ltd.

When announcing the acquisition, Mac Slingerlend, Ciber’s president and CEO had said: “We have been seeking to add both leadership and scale to our Indian operations for a long time. Iteamic has been in business since 2003 and has an excellent model established for offshore delivery of projects generated from the United States.”

Commenting on the acquisition, Raghurama Kote, founder, Iteamic had noted, “Iteamic is excited to become part of Ciber. Ciber’s strengths in the US and Europe will bring great additional opportunities and synergies to the combined India operations in the future.”