VIT - Vanceinfo Buys 100% Equity Interest In Bright Consulting
VanceInfo: Bd OKs Buyback Of Up To $40M Of ADSs
VanceInfo Announces Share Repurchase Plan and Acquisition of Oracle Consulting Firm 03/21 05:49 AM
BEIJING, March 21, 2011 /PRNewswire-Asia/ -- VanceInfo Technologies Inc. (VIT:$28.6000,$0.0000,0.00%) , an IT service provider and one of the leading offshore software development companies in China, today announced that its Board of Directors has approved a share repurchase program, effective March 2011. Under the program, VanceInfo (VIT:$28.6000,$0.0000,0.00%) has been authorized, but is not obligated, to repurchase up to $40 million worth of outstanding American Depositary Shares (ADSs) representing the ordinary shares of VanceInfo (VIT:$28.6000,$0.0000,0.00%) from time to time over the next 12 months, depending on market conditions, share price and other factors, as well as subject to the relevant rules under US securities regulations.
The share repurchase program will be funded by the Company's 2011 free cash flow as well as existing working capital. As of December 31, 2010, the Company had cash, cash equivalents and marketable securities of approximately US$181.7 million.
As of December 31, 2010, the Company had 44,556,910 ordinary shares issued and outstanding.
In early March 2011, VanceInfo (VIT:$28.6000,$0.0000,0.00%) acquired 100% equity interest in Bright Consulting (Beijing) Limited("Bright"), a China-based IT services company providing Oracle consulting and implementation services to Chinese domestic clients. Under the terms of the acquisition agreement, VanceInfo (VIT:$28.6000,$0.0000,0.00%) will pay an initial consideration of approximately $0.7 million in cash and stock. Contingent
consideration will be paid based on Bright's financial performance in the next 24 months. Bright generated approximately $1.5 million in net revenues in 2010. The acquisition aims to strengthen VanceInfo (VIT:$28.6000,$0.0000,0.00%) 's domestic consulting capabilities, especially in the Oracle ERP area.
"Sometimes you eat the bar, and sometimes, well, he eats you."
AI
