Pittsburgh, PA -- Mastech Corporation a leading worldwide provider of information technology (IT) services, announced today that it has acquired The Amber Group, an SAP services company which provides integrated consulting, development, implementation and training. The transaction was a stock purchase accounted for as a pooling of interests and will be accretive to future earnings.
The Amber Group works exclusively with SAP systems, helping clients achieve efficiency in financials, logistics, human resources, Basis and ABAP/4 programming functionality, all in support of overall business goals. Its 75 US-based consultants are SAP functional and technical experts with an average of five years of SAP experience. With the acquisition, Mastech`s SAP workforce will number more than 110 professionals.
The Amber Group operates two remote delivery centers in San Mateo, California; and Philadelphia, Pennsylvania, which allow outsourcing of SAP modules such as human resources. The Amber Group has worked with IBM, Procter & Gamble, SAP America, United Technologies and Black & Decker. Estimated revenues for the year ending December 31, 1998 are approximately $12 million.
"Our acquisition of The Amber Group will rapidly accelerate our presence in the SAP marketplace," said Lisa Kustra, Senior Vice President, Mastech Corporation. "The Amber Group has a solid reputation for reliable SAP applications consulting based on advanced expertise and deep experience. We were impressed not only with the quality of The Amber Group`s consultants, but with the calibre of their management team."
"The Amber Group acquisition enhances our current market leadership role in the enterprise package implementation market, in which the SAP implementation market segment is estimated to be over $10 billion worldwide," said Sunil Wadhwani, Mastech`s co-chairman and CEO. "The combination of Amber Group personnel and in particular its remote development capabilities, will greatly complement Mastech`s existing offsite development infrastructure, expertise, methodology and project management and will allow us to offer even more to our global enterprise package clients."
"We are looking forward to joining one of the best-performing and well-respected organizations in the IT industry," said Bob Detwiler, president of The Amber Group. "Our clients will benefit from the breadth of high-value services Mastech provides, its sales support and global project support infrastructure. Our consultants will now be able to take advantage of a wider range of career opportunities and training."
Michael Flaherty, Vice President of The Amber Group, added, "Our association with Mastech will give us the critical mass we need to respond even more quickly to client needs, particularly the growing demand for enterprise package outsourcing capabilities."
@EditorNote = Editors note
Mastech Corporation (NASDAQ: MAST) is a worldwide provider of high value information technology services including enterprise solutions implementation, internet/intranet solutions, applications development, customer interaction management, and software modernization services, on a time and materials or fixed time/fixed price basis, with offshore delivery options. With over 5,000 staff, Mastech delivers its services to more than 900 clients through 26 offices in North America, Europe, Asia, Australia and Africa. For more information on Mastech, visit http://www.mastech.com
Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. The Company`s actual results may differ materially from the results anticipated in these forward-looking statements as a result of certain factors set forth under Risk Factors and elsewhere in the Company`s Annual Report on Form 10-K with the Securities and Exchange Commission on March 16, 1998.
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