Virtusa to buy majority stake in Polaris for Rs.1,173 crore

US based Virtusa Corporation has decided to buy around 53 percent of shares of city based software services company Polaris Consulting and Services Ltd for Rs.1,173 crore, the Indian company said.

Virtusa will make an unconditional mandatory offer to the public shareholders of Polaris to purchase up to an additional 26 percent of its outstanding shares.

In a statement issued here, Polaris Consulting said it has entered into a definitive share purchase agreement (SPA) with Virtusa Corporation whereby a subsidiary of Virtusa will acquire approximately 53 percent of the paid up share capital of Polaris.

The American company will buy the shares from certain promoter entities led by Polaris chairman Arun Jain and certain other shareholders, including OrbiTech Private Ltd (formerly known as Orbitech Ltd).

As per the agreement, Virtusa will purchase the shares at a price of around Rs.220.73 per share.

"I wish all Polaris associates who contributed to building Polaris into a world class company in the BFSI (banking, financial services and insurance) space, continued success in their journey under the larger canvas of Virtusa and Polaris.

"This will also enable me to establish and pursue innovative models for social impact using Design Thinking in the areas of health and education, in addition to my focus on steering Intellect Design Arena Limited into a global digital products powerhouse," Jain was quoted as saying in the statement.