Japanese IT services juggernaut NTT DATA is acquiring US-based Intelligroup for approximately $199 million in cash, followed by a second-step merger to acquire all remaining shares at the same price paid in the tender offer.
NTT DATA, through subsidiary Mobius Subsidiary Corporation, will make an offer to purchase all outstanding shares of Intelligroup common stock for $4.65 per share, a 21.1% premium to its average closing stock price over the last three-month period and a 27.7% premium over the closing price of the company’s common stock before the weekend.
The boards of directors of both NTT DATA and Intelligroup are said to have unanimously approved the transaction, and the latter’s stockholders will be actively recommended to tender their shares in the aforementioned offer.
According to the press release, the tender offer is scheduled to commence within 6 business days and will expire after 20 business days unless the offer is extended.
Intelligroup is a Princeton, NJ-headquartered enterprise applications systems integrator that provides consulting, implementation, testing, application management, infrastructure management, and other IT services primarily related to SAP, Oracle and Microsoft applications.
Intelligroup currently services corporations located in the US, UK, Denmark, Japan, India and the Middle East, which it says would complement NTT DATA’s services/solutions business and enhance its customer base.