Midas Medici Group Holdings Inc (OTCBB: MMED) shares rocketed 37.6% higher Monday to $2.38, a business day after closing its CIMCORP acquisition. Volume for the stock was around 25,300 shares.
A news release dated Monday, August 8, said the acquisition, first announced in July, was closed in a part-cash and part-stock transaction. Midas acquired 60% of CIMCORP upon the initial closing, with the remaining 40% being purchased in two equal-sized tranches within the next 24 months.
The acquisition of CIMCORP, which has IT operations across Brazil’s national territory, will allow Midas to significantly expand its current IT offerings into South America. CIMCORP has built strong relationships with both government and commercial clients over the years, resulting in over 200 employees and revenues in excess of $84 million in 2010.
The release quoted Midas Founder and CEO Nana Baffour as saying, “On behalf of our management and Board of Directors, I am pleased to announce the closing of Midas’ acquisition of CIMCORP — truly a milestone event for our company.
Continued Baffour, ”This year we have consummated several major acquisitions, including Consonus, WeatherWise and EHFC. However our latest acquisition with CIMCORP takes center stage as we propel our IT service offerings with exciting new international initiatives, while immediately doubling Midas’ consolidated revenue generating capabilities. CIMCORP allows us to enter the fast-growing IT market in Brazil and Latin America as we look to leverage our new operations and develop new business prospects that wouldn’t be possible as separate organizations.”
Midas Medici Group Holdings, Inc., headquartered in New York, is a green IT company that supplies mid-sized and select enterprises and institutions with leading-edge IT solutions in the fields of virtualization, cloud computing and data management, as well as working with utilities and other institutions to transform the electric grid through digital technologies.