Luxoft Holding, Inc. (NYSE:LXFT), a leading provider of software
development services and innovative IT solutions to a global client
base, today announced that it has entered into a Share Purchase
Agreement to acquire derivIT, a Singapore-based financial
services-focused technology consulting provider. derivIT provides a
unique blend of technology expertise, deep domain understanding and
strong knowledge of leading platforms in credit and risk management
and capital markets. The completion of the transaction is subject
to approval by Reserve Bank of India, as well as satisfaction of
several other customary conditions precedent, and is expected to
occur in the coming weeks.
This transaction cements a strong foundation on which Luxoft
intends to build its delivery platform in APAC to service numerous
high-potential clients in the region. In addition to helping Luxoft
pursue new business opportunities in financial, automotive, telecom
and other sectors in the region, this transaction also helps Luxoft
respond to interest on the part of a number of its existing global
customers in being serviced by Luxoft from locations in this
region. Furthermore, Luxoft sees immediate cross-selling
opportunities to be realized between derivIT and Excelian, Luxoft’s
Financial Services practice, due to a highly synergistic customer
base and deep expertise in financial software platforms.
“derivIT is a strategic acquisition anticipated to consolidate
and strengthen Luxoft’s leadership position as one of the top
consulting, implementation and support services providers for
Murex. It establishes a sizable base for our Company’s Asia Pacific
and Middle Eastern presence to cater to financial services,
automotive and other customers and provides access to new clients
in the APAC and Middle East regions. We are also excited to add to
our High Potential Accounts list several customers of derivIT,
marquee logos with considerable cross-selling potential,”
said Luxoft President and CEO Dmitry Loschinin.
“derivIT is an important addition to Luxoft’s architecture. We are
keen to have its track record of delivering consistent exemplary
banking transformations, which complements our business model of
building long-term relationships with our customers.”
Approximately ninety percent of derivIT’s revenues are derived
from installations of Murex trading, risk and processing solutions
across its blue chip clients based in Asia-Pacific. Commenting on
the deal, Murex Head of Alliances in APAC, Niraj Marfatia said: “I
am pleased to see two of our strongest system integrators and
Alliance partners globally coming together. Alliance partner status
is our highest level of partnership at Murex. We believe this will
offer Murex clients a partner with a global footprint, able to
better deliver high quality implementations and support on a
worldwide scale.” Upon consummation of the acquisition, derivIT
will be able to offer a wide variety of domain-focused technology
services to its financial services customers, while Luxoft expects
to measurably extend regional coverage to its global client
base.
After the acquisition, Luxoft’s delivery footprint, catering to
enterprises located in Singapore, Australia, Hong Kong and the
Middle East, will also include India, Malaysia, China and Vietnam.
According to the Gartner report, “Forecast: IT Services, Worldwide,
2014-2020, 4Q16 Update,” authored by Kathryn Hale, Allie Young, et.
al, published on December 16, 2016, end-user spending in Singapore,
Malaysia, and the rest of Emerging Asia on business services and
product support is projected to amount to $16 billion by the year
2020, representing a 5-year compound annual growth rate of
approximately 6%. The combination of derivIT and Excelian’s
expertise together with Luxoft’s global delivery platform positions
Excelian, Luxoft’s Financial Services practice, as an international
one-stop destination for all technology needs, from advisory to
engineering. It also globalizes its packaged services expertise,
strengthens its influence in the financial vertical and solidifies
its position in Murex implementation and support on a worldwide
scale.
“We are pleased to partner with Luxoft and offer our existing
clients access to Luxoft’s mature and highly scalable global
delivery platform, which will support execution of larger-scale
engagements and a broader suite of service offerings,” said
derivIT’s CEO, Mukund V. Rao. “We are delighted to have an
opportunity to expand beyond current 'Run the Bank'-focused
engagements into 'Change the Bank'-geared tasks, directly partaking
in the digital transformation process of our clients.”
About Luxoft
Luxoft Holding, Inc. (NYSE:LXFT) is a leading provider of
software development services and innovative IT solutions to a
global client base consisting primarily of large multinational
corporations. Luxoft’s software development services consist of
core and mission critical custom software development and support,
product engineering and testing, and technology consulting.
Luxoft’s solutions are based on its proprietary products and
platforms that directly impact its clients’ business outcomes and
efficiently deliver continuous innovation. The Company develops its
solutions and delivers its services from 32 dedicated delivery
centers worldwide. It has more than 12,000 employees across 39
offices in 19 countries in North America, Mexico, Western
and Eastern Europe, Asia Pacific, and South Africa.
Luxoft is incorporated in Tortola, British
Virgin Islands, has its operating headquarters office in
Zug, Switzerland and is listed on the New York Stock
Exchange. For more information, please visit
http://www.luxoft.com.
About Excelian, Luxoft Financial Services
Excelian, Luxoft’s Financial Services division, helps customers
maximize efficiency, reduce risk and increase speed of delivery via
adoption of better practices and more advanced systems. Excelian
delivers an end-to-end service, from consulting to technology
services - platform consolidation, infrastructure optimization,
cloud and utility-based models, complemented by a range of
proprietary solutions. Excelian manages the standardization of
custom complex software development and helps simplify solutions to
streamline banking cost structures and achieve more efficient
operations via its expertise in packaged software from Murex, Open
Link and Calypso, among others.
About derivIT
derivIT was founded in December 2007 to build a
consulting-driven firm which was focused on providing the best in
class service to the ever changing and diverse Capital Markets
industry, backed by domain expertise and a proficient team of
in-house consultants. derivIT’s distinction arises from a
balanced ability to provide resolutions to clients coupled with
tactical thinking. derivIT has a strong client base spread
across Singapore, Malaysia, Australia, Middle East, India, China,
Australia and the Middle East. Today, derivIT continues to
expand into new geographies and markets with a client-oriented
culture to enable clients achieve competitive advantage through the
Company’s domain expertise and dedication. Being a Global Alliance
partner to Murex has provided derivIT with the right foundation to
offer a complete range of services on Murex’s MX.3 and MxG2000
platforms covering system implementations, upgrades, support,
development, risk consulting and managed testing.
Forward-Looking Statements
This news release of Luxoft Holding, Inc (“Luxoft”)
contains “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995, Section 27A of
the Securities Act of 1933, and Section 21E of the Securities
Exchange Act of 1934. These forward-looking statements include
information about possible or assumed future results of our
business and financial condition, as well as the results of
operations, liquidity, plans and objectives. In some cases, you can
identify forward-looking statements by terminology such as
“believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,”
“should,” “plan,” “expect,” “predict,” “potential,” or the negative
of these terms or other similar expressions. These statements are
subject to, without limitation, the risk factors discussed under
the heading “Risk Factors” in Luxoft’s Annual Report on Form 20-F
for the year ended March 31, 2016 and other documents
filed with or furnished to the Securities and Exchange
Commission by Luxoft. Except as required by
law, Luxoft undertakes no obligation to publicly update
any forward-looking statements for any reason after the date of
this news release whether as a result of new information, future
events or otherwise.
All trademarks are recognized and are the property of their
respective companies.
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version on businesswire.com: http://www.businesswire.com/news/home/20170323006272/en/
Luxoft Holding, Inc.Alina V. Plaia, 212-964-9900, ext.
2404Vice-President, Global CommunicationsIR@luxoft.comorPatrick R.
Corcoran, 212-964-9900, ext. 2453Director, Public
RelationsPCorcoran@luxoft.com
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