R Systems to buy US firm WebConverse

R Systems International has signed a definitive agreement to acquire US-based technical support company WebConverse.

According to an official release issued by R Systems to the BSE today, the estimated value of the transaction is $10.7 million inclusive of earn out payments. The acquisition is scheduled to be completed within the next three weeks.

WebConverse operates out of Salt Lake City serving the high technology sector with a special focus on the growing mobile applications market. It achieved revenues of $ 5.1 million in calendar year 2005, the release said.

"This acquisition places us in a select group of service providers having onshore & offshore support capabilities...this coupled with the domain expertise WebConverse has in the rapidly growing mobile applications market, strengthens our value proposition to the high technology sector. Also, given the growth potential of the existing WebConverse client base, we see a near term and long term strategic benefit for all our stakeholders. We welcome WebConverse customers and employees to the R Systems family," Rekhi Singh, CEO of R Systems, said.