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.