FREMONT, Calif., March 18, 2009 (GLOBE NEWSWIRE) -- iGATE (Nasdaq:IGTE), an integrated Technology and Operations (iTOPS) company, and CAC Corporation (TYO:4725), an Information Technology services company, jointly announced the execution of a non-binding letter of intent regarding formation of a strategic business alliance to deliver Information Technology and Integrated Technology and Operations (iTOPS) services to CAC's Japanese clients for their international operations.
iGATE and CAC intend to work together to provide technology solutions and support to Japanese corporations with global presence. The primary purpose of the strategic alliance is to exploit the rapidly growing opportunities created by the overseas expansion of Japanese corporations.
CAC will introduce high quality outsourcing service to its existing clients through the global service delivery footprint of iGATE. The companies will utilize each other's complementary strengths to target new customers globally.
CAC has vast experience in providing service to companies in the finance and pharmaceutical industries. iGATE offers information technology system development, system operations and BPO (Business Process Outsourcing) solutions to client companies to support their sustainable growth.
Under the framework of this alliance, CAC has the right in its discretion to acquire up to 2.5% of the issued and outstanding voting shares of iGATE by purchasing iGATE shares in the secondary market.
While the final terms of the alliance are subject to the future execution of a definitive agreement, CAC and iGATE have targeted revenue in excess of $ 50 million to be generated over the next three years from customer contracts based upon the business alliance.
Toshio Shimada, President and CEO of CAC Corporation, said, "This proposed partnership is an important next step for our companies. With Japanese companies expanding their overseas presence, we anticipate an increase in the demand for technology services needed to support their growth. We wish to capitalize on this demand through our partnership with iGATE."
"We are pleased to have an opportunity to partner with CAC. This proposed alliance will help iGATE expand its market share among Japanese customers, while making it a preferred technology partner for Japanese companies across the globe. We are creating what we believe will be a model of cooperation with Japanese companies," said Phaneesh Murthy, CEO, iGATE Corporation.
About CAC Corporation
CAC Corporation, headquartered in Tokyo, Japan provides Information Technology services. It offers system development and integration services, which include systems consulting, design and development, and installation and maintenance of systems. The company also provides systems operation and management services, including operation and management of computer centers and information systems; management of networks; and support services, such as helpdesk services and data processing. CAC Corporation has 14 subsidiaries and four associated companies and was founded as Computer Applications Co., Ltd. in 1966. For more information please visit www.cac.co.jp
About iGATE
iGATE (Nasdaq:IGTE) is the first outsourcing solutions provider to offer a business outcome based pricing model through a fully integrated technology and operations (iTOPS) structure with global service delivery. iGATE works with clients to optimize their businesses, secure substantial and sustainable year-on-year cost benefits, tie costs to business needs and results. iGATE provides IT consulting; application development and maintenance; data warehousing; business intelligence solutions; ERP/ enterprise solutions; BPO/business service provisioning; infrastructure management; independent verification and validation; KPO and contact center services. The company has been assessed at CMMI Level 5, follows Six Sigma methodologies and is COBIT, ISO 9001 and ISO 27001 certified, ensuring the highest levels of quality and data security. iGATE has 16 offices in 34 countries and manages global delivery centers in Mexico, Australia, Malaysia and India. iGATE is rated as a leading employer in India. For more information, please visit www.igate.com.
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Forward-Looking Statements
Some of the statements contained in this news release that are not historical facts are forward-looking statements. These forward-looking statements include the company's financial, growth and liquidity projections as well as statements concerning the company's plans, strategies, intentions and beliefs concerning business cash flows, costs and the markets in which it operates. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects" and similar expressions are intended to identify certain forward-looking statements. These statements are based on information currently available to the company and it assumes no obligation to update the forward statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from the forward-looking statements. These risks include, but are not limited to, the company's ability to predict its financial performance, the level of market demand for its services, the highly-competitive market for the types of services offered by the company, the impact of competitive factors on profit margins, market conditions that could cause the company's customers to reduce their spending for its services, the company's ability to create, acquire and build new businesses and to grow existing businesses, attract and retain qualified personnel, reduce costs and conserve cash, currency fluctuations and market conditions in India and elsewhere around the world, political and military tensions in India and South Asia, changes in generally accepted accounting principles and/or their interpretation and other risks that are described in more detail in the company's filings with the Securities and Exchange Commission including its Form 10-K for the year ended December 31, 2008.