Ness Technologies Acquires Selesta España

Ness Technologies, Inc., a global provider of information technology (IT) services and solutions, today announced that it has signed a definitive agreement to acquire Selesta España S.A.U., a privately held IT software distribution and systems integration company based in Spain.

The purchase price in the all cash transaction is €6.25 million, with an additional €3.75 million to be paid over the next two years based on the achievement of certain performance goals. For the full year 2005, Selesta España generated revenues of about €10 million and was profitable. The company has 35 employees in Spain and Portugal.

Selesta España distributes software products developed by global independent software vendors (ISVs), to its reputable customer base in the territories of Spain and Portugal, in the public and private sectors.

Selesta España will become part of NessPRO - Ness Technologies' product distribution business, currently operating in Israel, Singapore and Thailand. Upon completion of the acquisition, Selesta España will change its name to NessPRO Spain. Paolo Sferlazza, currently President of Selesta España, will serve as Managing Director of NessPRO Spain and will report to Yoram Michaelis, Executive Vice President and Head of NessPRO.

"The acquisition of Selesta España is an important milestone in executing Ness' strategy to develop NessPRO as a global distribution channel for leading ISVs, leveraging our strategic partnerships with ISVs, as well as strengthening our presence in Europe," said Yoram Michaelis, Executive Vice President and Head of NessPRO, Ness Technologies. "Selesta España brings a wealth of expertise and experience in the growing Spanish and Portuguese IT markets, and given the nature of the software distribution business, we expect a seamless integration process. We see a tremendous number of business opportunities that we can target in these countries, and we plan to pursue these opportunities."

"We are very proud to become a part of Ness Technologies," said Mr. Sferlazza. "We represent a variety of quality solution vendors and application providers, and have a strong base of sales and technical skills, as well as an extensive customer base. Ness and Selesta España share the same commitment to provide the best products and services and we look forward to contributing significant value to Ness."

By Ness Technologies