Allied Digi buys 80 pct in EnPointe unit for $30mln

By Janaki Krishnan

MUMBAI (Reuters) - Indian IT services firm Allied Digital Services Ltd sees its U.S. buy adding about $4-$5 million to its earnings before interest, depreciation and taxes for 2008/09, a top official said.

Earlier on Thursday, Allied announced the acquisition of 80.5 percent in EnPointe Global Services, the infrastructure management services unit carved out of Nasdaq-listed EnPointe Technologies Inc, for $30 million.

Allied, which provides IT infrastructure management services expects EnPointe Global's $40 million contracted revenues to be added to its current year revenues, projected at 4.8 billion rupees, Chairman and Managing Director Nitin Shah said.

"This is our first acquisition in the U.S. and with this about a third of our revenues will be from there," Allied's Chairman and Managing Director, Nitin Shah old Reuters.

"The acquisition gives us a ready base to expand our presence in the U.S. We will also be looking at cross-selling opportunities in our various segments," he added.

Allied will pay about 40 percent of acquisition cost in cash and the remaining through an equity swap, resulting in a 4 percent dilution in Allied Digital's equity, Shah said.

Allied Digital, which has about 10 percent market share in the domestic infrastructure management services segment, derives 94 percent of its revenues from India.

EnPointe Technologies, which has annual revenue of $350 million, provides business-to-business information technology products and services