HP plans to buy out Globalsoft

HP plans to buy out Globalsoft

BANGALORE, India: Hewlett-Packard said on Sunday it planned to purchase all 16.4 million publicly-held shares to fully own its Indian subsidiary Digital Globalsoft and expand its presence in the country.

The U.S. tech giant said it was offering 750 rupees (US$16.30) a share and expected 35,000 shareholders, including Digital Globalsoft employees, to be eligible.

"Software development was done both by HP and Digital Globalsoft in India. There is a conflict and the merger will resolve this," Hans Lidforss, Hewlett-Packard's vice president of strategy and corporate development, said by videoconference to reporters in India's technology hub Bangalore.

Hewlett-Packard employs about 5,000 professionals in India while Digital Globalsoft has 4,600 software engineers.

Public shareholders currently own 29 percent of Digital Globalsoft. --AFP