Virtusa to acquire majority interest in Polaris
Top officials of Virtusa at
the media briefing.
Virtusa Corporation, a global business consulting and IT outsourcing
company that combines innovation, technology leadership and industry
solutions to transform the customer experience has entered into a
definitive agreement to acquire a majority interest in Polaris
Consulting and Services Ltd. (Polaris), a global provider of IT
solutions primarily to the banking and financial services industry
segment, for approximately $270 million.
The transaction consideration includes the 51.7% majority interest
and an unconditional mandatory open offer to purchase up to 26% of the
outstanding shares of Polaris from the public shareholders of Polaris.
Upon closing of the Polaris transaction, Citigroup Technology Group,
Inc. has agreed to designate Virtusa and Polaris as a preferred vendor
for Global Technology Resource Strategy for the provision of IT services
to Citi on an enterprise-wide basis.
As of September 30, Chennai, India-based Polaris had approximately
7,650 employees, serving its global client base through 12 development
centres. For the six months ended September 30, 2015, Polaris generated
a pro forma revenue of approximately $150 million.
Polaris had cash, cash equivalents and short-term and long-term
investments of approximately $44.8 million as of September 30, 2015.