iGATE, an integrated Technology and Operations company, and Japan-headquartered CAC Corporation, an IT services company, have announced the execution of a non-binding letter of intent for a strategic business alliance to deliver iTOPS' services to CAC's Japanese clients for their international operations.
iGATE and CAC intend to work together to provide technology solutions and support to Japanese Corporations with global presence. The primary purpose of the strategic alliance is to exploit the rapidly growing opportunities created by the overseas expansion of Japanese corporations, a release said.
CAC will introduce high quality outsourcing service to its existing clients through the global service delivery footprint of iGATE. The companies will utilize each other's complementary strengths to target new customers globally.
CAC has vast experience in providing service to companies in the finance and pharmaceutical industries.
Under the framework of this alliance, CAC has the right in its discretion to acquire up to 2.5 per cent of the issued and outstanding voting shares of iGATE by purchasing iGATE shares in the secondary market.
While the final terms of the alliance are subject to the future execution of a definitive agreement, CAC and iGATE have targeted revenue in excess of $50 million to be generated over the next three years from customer contracts based upon the business alliance.