Oman-based Services & Trade (Sobha Group) has acquired the Technology Group business — Imtac and its subsidiaries — of Renaissance Services SAOG for approximately $41 million.
The transaction realises a pre-tax capital gain of approximately RO6 million ($16 million) for Renaissance Services and is effective in retrospect from January 1, 2008.
“The divestment is in line with Renaissance’s strategic intent to focus on its core oil and gas services businesses and confirms earlier announcements that the company was considering divestment of its successful technology media, and training businesses”, Renaissance said.
“The transaction was an excellent outcome for all stakeholders: As Oman’s leading IT company, Imtac remains in Omani ownership, with the added benefit of a great strategic fit with the India-based IT businesses of the Services & Trade (Sobha Group), including SRIT. This puts in place a powerful IT coalition on an Oman/India axis with enormous potential throughout the region,” said Stephen Thomas, CEO of Renaissance.
“SRIT is an SEI CMM L5 enterprise with a world class suite of software products in healthcare, telecom and e-services, which are entirely complimentary with Imtac’s market leadership in Oman, our acknowledged technology services delivery competence and regional presence in those domains,” said Ashok Sardiwal, CEO of Imtac.
The partnership of Brigadier-General (Retd.) Suleiman bin Mohammed Al-Adawi and Mr. P.N.C Menon has created a multi billion dollar international conglomerate over the past decades. Apart from construction and property development they have very successfully built an international technology enterprise.
In a joint statement they expressed: “The entry of IMTAC into our group allows us to target market leadership in the booming MEA region from Oman. We have always strongly believed in the vision of His Majesty Sultan Qaboos bin Said in terms of striving for global quality and service delivery benchmarks, without losing focus on our Omani heritage, culture and social commitment. Imtac, its people, its customers and its positioning in both Oman and the region represents an institution of excellence through which we will deliver our regional aspirations.”
“Renaissance has retained a token minority stake in Imtac and we will play our full part in continuing to grow the IT space nationally and supporting Imtac’s international ambitions. It was always important to us that this divestment is in the best interests of Imtac management, employees and customers, and this new ownership structure is ideal for stable business continuity as well as exciting new potential. This day comes with mixed feelings. Imtac has been an integral part of our group since its inception. I feel like a parent who is sad when a child leaves the nest, but is proud and full of hope in the act of letting them go” said Renaissance Chairman, Samir Fancy
Indian Ambassador to Oman, HE Anil Wadhwa, expressed his pleasure at the deal and emphasised the potential of collaboration in the IT space between two first class Omani and Indian enterprises.
“There is a long history of success in commercial synergy between our two countries. In Information Technology, India has built up valuable brand equity in the global markets. India's most prized resource in today's knowledge economy is its infrastructure and readily available technical work force. These attributes can only bring further opportunity to build on Imtac’s achievements in Oman and the region. I wish them every success,” he said.
About Sobha Group
Sobha Group is a recognised leader in the real-estate development business, delivering international quality products of superior finish and services through constantly evolving benchmarked practices.
Sobha, with its unique business model that is backward integrated, has been at the forefront, adopting world-class building techniques and quality standards, and now enjoys an ever widening reputation for reliability, dependability and integrity. For more information visit www.sobha-me.com.
