Friday, October 31, 2008

NetSol Technologies Inc. (NTWK) To Acquire Ciena Solutions, Based On Performance

Business applications company NetSol Technologies Inc. (NASDAQ: NTWK) announced it will purchase Ciena Solutions LLC. Under the terms of the agreement, the acquisition will be made with internal cash and restricted stock, and deferred “based on an earn-out formula linked to Ciena Solutions’ performance.”

Ciena Solutions provides consulting and staffing services focused on the Systems, Applications and Products (SAP) application suite, with core competencies in the SAP R/3 (ECC) system, NetWeaver including Business Intelligence, Exchange Infrastructure (XI), Portals, MDM, and the mySAP Business Suite.

“I am excited to be launching a vibrant and global SAP practice through the acquisition of Ciena Solutions,” said Najeeb Ghauri, Netsol chair and CEO. “It marks another major milestone in our growth strategy and provides an entry into one of the largest markets for information technology solutions and services within the industry.”

The purchase agreement also showcases NetSol’s latest step toward expansion into the U.S. market. Netsol is a U.S. corporation that has previously and primarily focused internationally with offices in several countries. Ciena Solutions is based in Los Angeles.

“At a time when companies are searching for robust and scalable solutions, Ciena Solutions brings tremendous SAP implementation capabilities and experience to our team,” said Mitch Van Wye, NetSol COO. “The SAP service offering expands NetSol Technologies’ current portfolio of world class information technology solutions.”

Ciena Solutions has also developed software technology complementary to the SAP platform, for which it maintains intellectual property rights, and is a Business Objects Solutions Provider partner.

The terms of the transaction will be disclosed in the Company’s Form 8-K and filed with the SEC.

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