US acquisition spurs Paradyne

DALAL STREET SPIKES

IT services company Paradyne Infotech rose nearly 5.3 per cent to close at Rs 92.6 as it announced its acquisition of 100 per cent stake in US-based software services company, Links Group International.

The stock purchase agreement was signed through Dyne Techservices, a subsidiary of the company. The consideration of the acquisition is for $4.75 million in an all cash deal.

The funding is to be done through internal accruals and debt. LGI's current year revenue is above $7 million and gross profit is above $1.4 million. The acquisition is expected to strengthen Paradyne's position in the US.