HiSoft Acquires U.S.-based IT Consulting Firm, Nouveon Technology Partners, Inc.
BEIJING, July 8, 2011 /PRNewswire-FirstCall/ -- HiSoft Technology International Limited, ("HiSoft" or the "Company") (NASDAQ: HSFT), a leading China-based provider of outsourced information technology and research and development services headquartered in Dalian, China, announced today that it has acquired 100% of the equity interests in Nouveon Technology Partners, Inc. ("Nouveon"), a provider of value-driven IT and process consulting services. Under the terms of the agreement, HiSoft will pay an initial consideration of US$5.5 million in cash with additional contingent consideration to be paid based on Nouveon's financial performance over the next two years. The combination of Nouveon's domain expertise and HiSoft's global offshore delivery capabilities creates a uniquely powerful value proposition for clients.
Founded in 2003 by T.J. Eberle and a team of industry consultants, Nouveon is an established provider of value-driven IT and process consulting services to Fortune 500 companies. Based in Charlotte, North Carolina, Nouveon delivers results-oriented work to clients across the United States with domain expertise primarily in the financial services and energy sectors.
"We believe Nouveon's value-driven services and tailored solutions combined with their strong domain expertise in financial services will greatly benefit HiSoft and our global client base," said HiSoft Chief Executive Officer Tiak Koon Loh. "Their highly skilled consultants have an excellent quality-to-cost track record, delivering high-value consulting services and solutions to clients across the United States. This acquisition exemplifies our strategy to strengthen our higher value-added service offerings as we look to further serve the growing needs of our customers."
Nouveon President T.J. Eberle added, "HiSoft's global presence and strong delivery capabilities add a new dimension to the services we offer our clients. HiSoft's extensive experience and global know-how make them an ideal partner to grow with as we seek to deliver greater value to our clients."HiSoft plans to use the Company's cash to fund the acquisition. Nouveon President T.J. Eberle together with key members of the existing Nouveon management team will remain with Nouveon after the acquisition. HiSoft will grant them employee incentive stock awards under HiSoft's recently adopted 2011 Equity Incentive Plan in order to retain and align their services with HiSoft. The Company expects the transaction to be accretive to earnings beginning in 2012. For more information about Nouveon, please visit http://www.nouveon.com. Forward-looking Statements This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs about future events and financial, political and social trends and assumptions it has made based on information currently available to it. HiSoft cannot assure that any expectations, forecasts or assumptions made by management in preparing these forward-looking statements will prove accurate, or that any projections will be realized. Such forward-looking statements may be affected by inaccurate assumptions or by known or unknown risks or uncertainties. Actual results may vary materially from those expressed or implied by the statements herein. For factors that could cause actual results to vary, perhaps materially, from these forward-looking statements, please refer to the HiSoft's filings with the Securities and Exchange Commission. Forward-looking statements contained herein speak only as of the date of this release. HiSoft does not undertake any obligation to update or revise publicly any forward-looking statements, whether to reflect new information, future events or otherwise.
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