Contact Information: Contacts: NetSol Technologies, Inc. Tina Gilger Chief Financial Officer Tel: +1 818-222-9195, x112 Investor Relations Christopher Chu Grayling Global Tel: +1-646-284-9426 Email: cchu@hfgcg.com
NetSol Technologies to Acquire Ciena Solutions LLC, Bringing SAP Consulting Services Into the NetSol Solutions Portfolio
Acquisition to Be Accretive to NetSol's Earnings for the Current Fiscal Year 2009
| Source: NetSol Technologies
EMERYVILLE, CA--(Marketwire - October 30, 2008) - NetSol Technologies Inc. "NetSol" (NASDAQ : NTWK ) (DIFX: NTWK), a U.S. corporation providing global business services
and enterprise application solutions to private and public sector
organizations worldwide, today announced the company has entered into an
agreement to acquire Ciena Solutions LLC, a leading provider of SAP
integration management services headquartered in Los Angeles, California
with a branch office in San Ramon, California.
NetSol will acquire Ciena Solutions for combination of cash and restricted
stock. Ciena Solutions is profitable and experienced double-digit growth
in revenues and profits in the past year. Under the terms of the agreement,
consideration for the acquisition is to be deferred over four years based
on an earn-out formula linked to Ciena Solutions' performance. The final
transaction is subject to customary closing conditions. NetSol intends to
use internal cash resources to pay for the cash component of the
transaction and would not be issuing any shares related to the stock
component of the transaction until the first quarter of fiscal year 2010.
Commenting on the occasion, Najeeb Ghauri, chairman and chief executive
officer of NetSol Technologies stated, "I am excited to be launching a
vibrant and global SAP practice through the acquisition of Ciena Solutions.
The acquisition of Ciena Solutions marks another major milestone in our
growth strategy and provides an entrée into one of the largest markets for
information technology solutions and services within the industry. This
agreement reflects the latest step toward in our expansion plans in the
U.S. market."
Ciena Solutions provides consulting and staffing services focused on the
SAP application suite, with core competencies in the SAP R/3 (ECC) system,
NetWeaver including Business Intelligence, Exchange Infrastructure (XI),
Portals, and MDM, and mySAP Business Suite applications including Supplier
Relationship Management (SRM) and Customer Relationship Management (CRM).
In addition, Ciena Solutions has developed software technology
complementary to the SAP platform for which it maintains intellectual
property rights and is a Business Objects Solutions Provider partner. Ciena
Solutions customers include leading companies such as Axeda, Healthnet, SAP
America, SGL Carbon, Southern California Edison and Ticketmaster.
"At a time when companies are searching for robust and scalable solutions,
Ciena Solutions brings tremendous SAP implementation capabilities and
experience to our team and represents an outstanding addition to NetSol
Technologies' Solutions Suite," stated Mitch Van Wye, chief operating
officer of NetSol Technologies. "With established SAP practice areas and
industry recognized thought leaders, the acquisition of Ciena Solutions
offers our global customers an ideal combination of SAP application and
business transformation services. The SAP service offering expands NetSol
Technologies' current portfolio of world class information technology
solutions and Global Business Services which have access to our
international infrastructure, intellectual capital and BestShoring delivery
platform."
"We are very pleased to be joining the NetSol family," stated Mark Pellas,
Ciena Solutions co-founder. "We feel strongly that Ciena Solutions SAP
Consulting practice is a perfect addition to NetSol Technologies commitment
to providing scalable, cost effective solutions across key industry
verticals."
The terms of the transaction will be disclosed in the Company's Form 8-K to
be filed with the Securities and Exchange Commission.
About Ciena Solutions LLC
Ciena Solutions LLC is a consulting and staffing services organization
focused on the SAP application suite. Ciena Solutions consultants have a
wide breadth of experience in SAP modules, business suite applications and
provide a unique blend of functional, technical, and project management
expertise to each client. Core competencies in SAP applications include
the core SAP R/3 (ECC) system, NetWeaver including Business Intelligence,
Exchange Infrastructure (XI), Portals, and MDM, and mySAP Business Suite
applications including Supplier Relationship Management (SRM) and Customer
Relationship Management (CRM). Ciena Solutions consultants bring tremendous
SAP implementation experience and can fit in any phase of a project
lifecycle whether it is at the beginning of a new implementation, testing a
system, or providing production support and optimization services for
existing implementations.
To learn more about Ciena Solutions LLC, visit www.cienasolutions.com
About NetSol Technologies Inc.
NetSol Technologies (NASDAQ : NTWK ) (DIFX: NTWK) is a U.S. corporation
providing global business services and enterprise application solutions to
private and public sector organizations worldwide. NetSol uses its
BestShoring™ practices and highly experienced resources in analysis,
development, quality assurance, and implementation to deliver high-quality,
cost-effective solutions. Organized into specialized industries, these
product and services offerings include portfolio management systems for the
financial services industry, consulting, custom development, systems
integration, and technical services for the global healthcare, insurance,
real estate, and technology markets. NetSol's commitment to quality is
demonstrated by its achievement of the ISO 9001, ISO 279001, and SEI
(Software Engineering Institute) CMMI (Capability Maturity Model) Level 5
assessments, a distinction shared by fewer than 100 companies worldwide.
NetSol Technologies' clients include Fortune 500 manufacturers, global
automakers, financial institutions, technology providers, and governmental
agencies. With its global headquarters located in Emeryville, California,
NetSol Technologies has operations and offices in London, San Francisco,
Sydney, Beijing, Bangkok, and Lahore.
To learn more about NetSol Technologies Inc., visit www.netsoltech.com
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