Cambridge divests arm to ACS for $30 mn

Cambridge Solutions, a Rs 1,200 crore integrated IT & BPO firm, has sold a part of its government vertical, run under its subsidiary Albion in the United States to Affliated Computer Services (ACS) for $30 million.

According to a spokesperson of Cambridge, the business used to bring in revenues of around $25 million and employed 170 people onsite in the US offering turnkey IT solutions.

This, according to him, is part of Cambridge's decision to exit servicing the government vertical and focus on BFSI and manufacturing verticals.

Chris Sinclair, Executive Chairman, Cambridge said: "We are pleased to announce this transaction, which will allow Cambridge Solutions to focus on its core high growth global outsourcing business. We concluded that our state and local government practice in the US, with its heavy on-shore staffing, can be better served and developed by a larger, experienced company like ACS, which already has a strong government practice."

The deal is subject to certain closing conditions, and is expected to be completed in the next several weeks.

Cambridge Solutions employs around 4,500 people of which 3,100 are in the BPO vertical.

The company had last fiscal reported a topline of $267 million and this fiscal raised $30 million through the private equity route from Merril Lynch.