Virtusa gets CCI nod to acquire 53% stake in Polaris

Don't want to miss the best from Business Standard?

US-based technology outsourcing company Virtusa Corp has received fair trade regulator CCI's nod to acquire 53% stake in mid-tier Indian IT firm Polaris Consulting & Services for about Rs 1,173 crore.

The combination is expected to help Virtusa provide end-to-end global banking and financial services and pursue larger consulting and outsourcing opportunities.

Virtusa is a global firm providing IT consulting, technology implementation and application outsourcing services and also deals in communications and technology, banking, finance and insurance.

In November last year, Virtusa said a subsidiary of the company will acquire about 53% of the paid-up share capital from certain promoter entities led by Arun Jain and certain other shareholders, including OrbiTech, formerly known as Orbitech Ltd.

The firm will purchase shares at a price of about Rs 220.73 apiece, aggregating about Rs 1,173 crore, it had said.

As per the announcement, Virtusa will also make an offer to the company's public shareholders to purchase another up to 26% of its shares for about $90 million (Rs 587.7 crore).

According to reports, post the deal, Citigroup Technology Group will designate Virtusa and Polaris as a preferred vendor for providing IT services to Citi on an enterprise-wide basis.

The Chennai-based Polaris is also a global IT company offering IT consulting services and financial technology for banking and insurance, among others.