IT services and product solutions provider Quintegra Solutions will acquire US-based technology consulting company Pingho Associates Corporation (PAC) for a consideration of Rs 198 crore ($49 million).

Under the agreement between the Chennai-based company and PAC, Quintegra will pay $20 million upfront, while the remainder will be EBITDA-linked to the acquiree's corporate performance, in payouts spread over the next three years. The State Bank of India [Get Quote] is the principal banker for the deal.

This is the third acquisition being carried out by Quintegra in 2007, after the buyout of US-based software solutions firm ValleyUS and Singapore-based product engineering company JadeLite Technologies in March this year.

Quintegra Chairman and Managing Director Shankarraman Vaidyanathan said the offer price of $49 million was five times PAC's current EBITDA margins, and the payout period over three years would be justified if the acquiree company could touch the $35 million benchmark in profits during the period.

"PAC brings strong consulting expertise in high-end IT consulting and leadership in the space IT services with a strong BFSI, mortgage and brokerage clientele," Vaidyanathan said.

With this acquisition, Quintegra expects to see its global headcount cross 1,000 and consolidated revenues over Rs 400 crore ($100 million), with profits exceeding Rs 50 crore ($13 million) in FY08.