Infosys Technologies Limited (Infosys - Nasdaq: INFY) today announced its agreement with Citicorp International Finance Corporation ("Citi") to acquire their entire holdings in Progeon Limited ("Progeon"). Under the agreement, Infosys will buy all (23% on a fully diluted basis) of Citi's holdings in Progeon amounting to 8.75 million shares for a consideration of approximately US$ 115.13 million (approximately Rs. 518 crore, considering an exchange rate of US$ 1 = Rs. 45). The consideration will be paid in cash and the transaction is expected to be completed by July 2006.
Progeon is a majority - owned subsidiary of Infosys. It is a leading provider of Business Process Management (BPM) services to Global 1000 companies and is among the top 10 third-party BPOs in India according to the NASSCOM 2004-05 rankings. It has over 7,000 employees as of March 31, 2006.
About the company
Infosys is a leading global technology services firm founded in 1981. Infosys provides end-to-end business solutions that leverage technology for its clients across the entire software life cycle: consulting, design, development, re-engineering, maintenance, system integration, package evaluation and implementation. In addition, Infosys offers software products to the banking industry, as well as business process management services through its majority-owned subsidiary, Progeon. For more information, contact V. Balakrishnan at +91 (80) 2852 0440 in India or visit us on the World Wide Web at
Infosys Safe Harbor
This press release contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the success of
our investments, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT, business process outsourcing and consulting services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry.
Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2005 and our reports on Form 6-K for the quarterly periods ended June 30, 2005, September 30, 2005, and December 31, 2005. These filings are available at
www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on our behalf.