TCG Software Services and Ivega Corporation merge
to form TCGIvega
Bangalore and Kolkata, 2nd June, 2004
TCG Software and Ivega Corporation today announced a merger
to create TCGIvega, a new international force in the provision
of offshore IT services through its combined businesses.
TCGIvega will be a leading provider of high value specialist
IT services to TCG Software and Ivega's overlapping financial
services, pharmaceutical and healthcare, manufacturing and
telecommunication customer communities in India, North America,
Europe, Asia Pacific and Middle East.
Mr. Giri Devanur, Chairman and CEO of Ivega Corp will
now head the organization as the Managing Director and CEO
of TCGIvega.
Commenting on the occasion, Dr. Purnendu Chatterjee, Chairman
of The Chatterjee Group, said: "The merger of TCG Software
and Ivega Corporation will create an exciting new force
in specialist information technology services. Both companies
performed well in 2003 and are coming together from positions
of strength at a time when there are significant opportunities
for enhanced future growth. The new entity will be better
placed to capture and exploit this growth. The combined
new management team has the experience to build on the existing
platforms to create a strong and resilient business that
will be a major industry player over the next few years."
Giri Devanur, Managing Director and Chief Executive of
TCGIvega confirmed, "We have a common vision of where
technology is going and very similar strategies for creating
customer value. We also have a shared commitment to innovation
and world-class engineering. We are excited about this merger
and the opportunities it will provide for ourselves and
for our clients."
Both companies had achieved strong results for the year
ended 31 December 2003 and hold a positive outlook for
2004, demonstrating that TCG Software and Ivega Corporation
are merging from a position of strength to create a high
quality information technology company with great growth
prospects.
TCG Group will have controlling stake in the merged entity.
The investments in Ivega by venture capital firms Global
Tech ventures (GTV) and ChrysCapital have been bought out
completely. The stock and cash deal, is expected to close
by July 2004, regulatory approval pending.
Mr. Dilip Advani, who is in charge of Technology investments
of TCG Group said, "There is a very good synergy
between TCG-Software and Ivega's capabilities and the
combined management team will be able to grow this business
significantly."
TCGIvega future growth will benefit from:
The existing strong momentum and prospects for both
TCG Software and Ivega Corp;
Enhanced revenue opportunities arising from new services
opportunities and brand extensions
across the combined markets;
The cross-over demand for services in the financial
services, pharmaceutical
and healthcare, manufacturing
and telecommunication customer
communities;
A well balanced and robust portfolio of assets combining
operationally
geared professional and commercial
operations with resilient and
stable client relationships;
Increased operational and financial scale and geographic
reach; with
approximately 700 qualified and
experienced staff, 3 development
centers in Bangalore, Kolkata,
Mumbai and one in the US, greater
points of presence with customer
in the US of America, Canada, UK,
France, Germany, and Switzerland.
Annual cost savings derived out of shared services
and better
economics of scale.
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