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Harvey Nash is pleased to announce that it has entered into an agreement to acquire SilkRoad Systems Limited and its subsidiary, SilkRoad Systems (Vietnam) Limited ("SilkRoad") a leading technology and software development company based in Ho Chi Minh City, Vietnam, for a maximum consideration of US$1.8 million on completion plus additional payments of up to US$0.232 million over the three years ending 30 June 2010 subject to certain profit targets being achieved.
SilkRoad, which has 135 employees and is based in Ho Chi Minh City, Vietnam, specialises in software development and business process outsourcing and is one of the market leading IT services companies in Vietnam. For the financial year ending 30 June 2006, SilkRoad generated revenue of US$1.064 million and operating profit of US$0.014 million.
The initial consideration comprises US$1.406 million in cash, of which US$0.426 million is retained for six months following completion, and 226,646 ordinary 5p shares in Harvey Nash.
Commenting on the acquisition, Harvey Nash Chief Executive, Albert Ellis, said:
"The acquisition of SilkRoad is an exciting expansion of Harvey Nash's offshore software development capability in Asia. The Group's offshore service is our fastest growing business in the UK, growing last year by 47%.
In addition, our strategy of focusing on longer term annuity revenues is moved forward significantly with SilkRoad's business process outsourcing service, a new offering for the Group. This is a perfect fit for our existing offshore software development operation.
Vietnam is Asia's fastest growing market outside China and this acquisition gives us further access to high quality software skills which are very much in demand in Europe and the USA."
26 June 2007
