iGATE to end JV with Software AG

Bangalore-based iGate Global Solutions, provider of IT and BPO services, has decided to terminate its joint venture (JV) with Germany-based Software AG, which specialises in business infrastructure software provider.

The JV "� Company Software AG (India) "� was aimed at assisting the entry of Software AG into offshore development in India.

"After a successful period of four years, we have come to the conclusion that the JV is no more of strategic interest to both companies. We have decided to mutually terminate the JV agreement. The entire process will be completed during the first quarter of the 2008 calendar year," said iGate CFO N Ramachandran. Around 80 personnel are employed by the JV.

"The revenue contribution from the JV was not significant. These employees will be given an opportunity to either continue with iGate or join Software in India. The formalities will be completed over the next one month," he said.

In another move, iGate, at its extraordinary general meeting on Tuesday, also approved the voluntary delisting of the equity shares of the company from the BSE, NSE and the Bangalore Stock Exchange.

Last month, the company had announced its plan to delist the offshore subsidiary in India. The move is aimed at putting an end to the confusion over two stocks and concentrating more on the North American markets.

"A majority of our clients are in North America. It will be better for us to keep the US listing (Nasdaq). It will create a higher profile for the company and assets for the employees," iGATE Global Solutions CEO Phaneesh Murthy had said.