Joint Technology Development (Jointech)

The EPAM Systems company announced in May, 2014 acquisition of Joint Technology Development Limited company ('Jointech'), service provider in the field of strategically important technologies for multi-national corporations from spheres of investment banking, asset management and large private equity.

Since 2007 specialists of Jointech in Shenzhen and Hong Kong develop specialized solutions which correspond to requirements of the investment banks and companies managing large private equity. Jointech development center in Shenzhen.

Details of the transaction with Jointech

On October 7, 2014 some details about purchase in April, 2014 by EPAM company of the Hong Kong Joint Technology Development (Jointech) together with its Chinese and Singapore "subsidiaries" became known. Total amount of the transaction with Jointech was $36.8 million.

From acquired company passed 216 IT specialists into EPAM.

Sellers of Jointech received for the company $10 million cash. Within payment for future services, within half a year after transaction, they will receive $4 million more cash and the stocks EPAM for the amount of $2.8 million. In case of further work in EPAM sellers of Jointech will receive cash $15 million and the shares EPAM worth $5 million (when calculating number of securities their average cost for March, 2015 will be considered).

These funds will be transferred by equal shares every year within three years. In case of leaving EPAM of sellers of Jointech, an action which they did not manage to receive are cancelled. As a guarantee of execution by sellers of obligations, 15% of total amount of the transaction with EPAM (in cash and actions) are deposited on the account of the eskrou-agent for one and a half years.