Bangalore: Digital GlobalSoft Limited on June 7 said it has signed a definitive agreement with HP, its parent company and its majority shareholder, to combine with HP Services' India Software Organisation (HPS ISO), establishing a significant services company with HP as a key investor, customer and supporter.

Announcing this, Digital said the initiative would create a renewed and dynamic digital that is "uniquely placed and advantageously positioned" within the IT sector in India.

It strengthens the company's operating model and makes Digital a consolidated focal point for HP's services global delivery capabilities in India, potentially providing significant growth opportunities to the company, it said.

Digital will closely align itself to its parent's global strategy and operations to maximise opportunities for the growth of its business and become a preferred vendor for HP services, the company said in a statement.

Following this initiative, HP's equity stake in Digital will initially increase to 73.2 per cent from the current 50.6 per cent and subsequently increase to 76.2 per cent by conversion of preference shares.

As part of this transaction, upon sanction of the scheme, the company intends to declare a special dividend not exceeding Rs 24 per share prior to the issue of equity to HP, it said.

PTI