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Digital GlobalSoft inks pact with HP

BANGALORE JUNE 7. Digital GlobalSoft today said it had signed a definitive agreement with HP, its parent company and majority shareholder, to combine with HP Services' India Software Organisation (HPS ISO), and establish a significant services company with HP as a key investor, customer and supporter.

Announcing this in a statement here, Digital said the initiative would create a renewed and dynamic digital that "is uniquely placed and advantageously positioned" within the IT sector in India. It strengthens the company's operating model and makes Digital a consolidated focal point for HP services global delivery capabilities in India, it said.

Digital would closely align itself to its parent's global strategy and operations to maximise opportunities for the growth of its business and become a preferred vendor for HP services.

Following this initiative, HP's equity stake in Digital will initially increase to 73.2 per cent from 50.6 per cent and subsequently to 76.2 per cent by conversion of preference shares.

As part of this transaction, upon sanction of the scheme, the company intends to declare a special dividend not exceeding Rs. 24 per share prior to the issue of equity to HP, it said.

Digital, in its renewed form, will continue to function as a board managed company with Som Mittal as its President and Chief Executive Officer. It will retain a unique positioning within the industry where it continues to operate as a listed subsidiary of a global IT major, closely affiliated to its parent's strategy with an independent charter for growth and development of its business operations, the statement said.

— PTI

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