Virtusa to buy 53% stake in Polaris Consulting
US-based Virtusa has expressed to buy 53 per cent stake in Chennai-based Polaris Consulting and Services for about Rs 1,173 crore.
New Delhi : US-based Virtusa has expressed to buy 53 per cent stake in Chennai-based Polaris Consulting and Services for about Rs 1,173 crore. The combination will equip Virtusa to provide end-to-end global banking and financial services and solutions and pursue larger consulting and outsourcing opportunities.
According to the agreement, a subsidiary of Virtusa will acquire about 53 per cent of the paid up share capital from certain promoter entities, led by Arun Jain, and certain other shareholders, including OrbiTech (formerly known as Orbitech Limited), Virtusa said in a statement. Virtusa will purchase shares at a price of about Rs 220.73 apiece, aggregating to about Rs 1,173 crore, it added.
"In addition, Virtusa will make an unconditional mandatory offer to the public shareholders of Polaris to purchase up to an additional 26 per cent of the outstanding shares of Polaris," it said. The deal will expand presence in key markets and enhance the ability to pursue larger consulting and outsourcing contracts, the statement said.
"I am delighted to have identified Kris Canekeratne and his team at Virtusa to pass on the baton to grow Polaris by offering greater value to customers and more opportunities for the team," Polaris Consulting and Services Chairman Arun Jain said. It had 7,648 employees (excluding BPO division) at the end of September 30, 2015.
Virtusa Chairman and CEO Kris Canekeratne said Polaris brings a terrific team and an attractive, blue-chip client base to the organisation. Upon closing of the transaction in the quarter ended March 2016, Citigroup Technology Inc will designate Virtusa and Polaris as a preferred vendor for providing IT services on an enterprise-wide basis.