8K Miles gains after acquiring Cintel Systems

8K Miles Software Services rose 2.41% to Rs 721 at 15:20 IST on BSE after the company said it will acquire Cintel Systems, the leading UI & UX, mobile application development and services company in US.

The company made announcement during market hours today, 22 April 2015.

Meanwhile, the BSE Sensex was up 202.15 points, or 0.70%, to 27,868.49.

On BSE, so far 16,777 shares were traded in the counter, compared with an average volume of 23,105 shares in the past one quarter.

The stock hit high of Rs 745 and low of Rs 710.50 so far during the day. The stock had hit a record high of Rs 923 on 8 January 2015. The stock had hit a 52-week low of Rs 105 on 23 April 2014.

The stock had outperformed the market over the past one month till 21 April 2015, rising 5.04% compared with 2.07% fall in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 2.11% as against Sensex's 4.2% decline.

The small-cap IT services provider has an equity capital of Rs 10.04 crore. Face value per share is Rs 10.

8K Miles Software Services announced that 8K Miles has entered into the asset purchase agreement with Cintel Systems, Inc. (Cintel), one of the leading User Interface (UI) and User Experience (UX) design and development services firms in the USA, with more than 7 years of experience developing user interfaces for desktop, mobile and tablets across a wide range of industry segments. This agreement includes acquisitions of Intellectual Property (IP), client contracts and employees.

The total amount of this acquisition is considered to be $3.7 million with combination of cash and stock. Large enterprise customers from verticals markets, such as: Healthcare, Pharmaceutical, Financial and Insurance that have primary focus on security and compliance - rely on 8K Miles' trusted Cloud offerings from Cloud Strategy, Migration, Managed Services, SaaS platform and Big Data Analytics. Extensive technical proficiency of over 70 Cintel's experts in UI & UX design and development for mobile and web applications that have joined 8K Miles will provide the company with unmatched competitive advantage to successfully offering end-to-end Cloud and SaaS solutions to Enterprise customers.

This acquisition will further strengthen the 8K Miles portfolio of services offered to company's customers in terms of variety and value while providing greater opportunities for the 8K Miles employees, partners and associates. In addition, 8K Miles gains the access to new Enterprise customers previously acquired by Cintel during 7 years in business.

8K Miles Software Services' consolidated net profit rose 16.54% to Rs 6.27 crore on 23.55% rise in total income to Rs 42.59 crore in Q4 March 2015 over Q3 December 2014.

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