Renaissance Services SAOG today announced its acceptance of a definitive, binding offer from the Oman based Services & Trade/Sobha Group, to acquire the Technology Group business - IMTAC and its subsidiaries - for approximately US$ 41 million. The transaction realizes a pre-tax capital gain of approximately R.O. 6 million (US$ 16 million), and is effective in retrospect from 1 January 2008, with the sale based on the audited balance sheet of 31 December 2007. This divestment is in line with Renaissance’s stated strategic intent to focus on its core Oil & Gas Services businesses; and confirms earlier announcements that the company was considering divestment of its successful Technology, Media, and Training businesses.

Brigadier-General (Retd.) Suleiman Bin Mohammed Al-Adawi and Renaissance Chairman Samir Fancy shake hands on the IMTAC deal

Renaissance CEO, Stephen Thomas, stated that the transaction was “an excellent outcome for all stakeholders: As Oman’s leading IT company, Imtac remains in Omani ownership, with the added benefit of a great strategic fit with the India based IT businesses of the Services & Trade /Sobha Group, including SRIT. This puts in place a powerful IT coalition on an Oman/India axis with enormous potential throughout the region”.

Imtac CEO Ashok Sardiwal explained that “SRIT is an SEI CMM L5 enterprise with a world class suite of software products in Healthcare, Telecom & E-services, which are entirely complimentary with IMTAC’s market leadership in Oman, our acknowledged technology services delivery competence and regional presence in those domains”.

The partnership of Brigadier-General (Retd.) Suleiman bin Mohammed Al-Adawi and Mr. P.N.C Menon has created a multi billion dollar international conglomerate over the past decades. Aside of construction and property development they have very successfully built an international technology enterprise. In a joint statement they expressed “The entry of IMTAC into our group allows us to target market leadership in the booming MEA region from Oman. We have always strongly believed in the vision of His Majesty Sultan Qaboos in terms of striving for global quality and service delivery benchmarks, without losing focus on our Omani heritage, culture and social commitment. Imtac, its people, its customers and its positioning in both Oman and the region represents an institution of excellence through which we will deliver our regional aspirations.”

Renaissance Chairman, Samir Fancy, expressed the company’s admiration for the new owners and explained that “Renaissance has retained a token minority stake in Imtac and we will play our full part in continuing to grow the IT space nationally and supporting Imtac’s international ambitions. It was always important to us that this divestment would be in the best interests of Imtac management, employees and customers, and this new ownership structure is ideal for stable business continuity as well as exciting new potential. This day comes with mixed feelings. Imtac has been an integral part of our group since its inception. I feel like a parent who is sad when a child leaves the nest, but is proud and full of hope in the act of letting them go”.

Indian Ambassador to Oman, HE Anil Wadhwa, expressed his pleasure at the deal and emphasised the potential of collaboration in the IT space between two first class Omani and Indian enterprises, “There is a long history of success in commercial synergy between our two countries. In Information Technology, India has built up valuable brand equity in the global markets. India's most prized resource in today's knowledge economy is its infrastructure and readily available technical work force. These attributes can only bring further opportunity to build on Imtac’s achievements in Oman and the region. I wish them every success”.