Baring Personal Fairness Asia (BPEA) has unveiled plans to amass cloud specialist Virtusa in an all-cash transaction valuing the expertise supplier at roughly US$2 billion.
In buying all excellent shares of frequent inventory for $51.35 per share, the transaction is anticipated to shut through the first half of 2021, topic to shareholder approval and customary regulatory necessities.
Based in 1996 with a powerful Asia Pacific heritage, Virtusa offers deep answer experience throughout Amazon Net Companies (AWS), Google Cloud and Microsoft applied sciences, along with partnerships with Adobe, SAP, Salesforce and Talend amongst others.
Housing greater than 22,700 staff, Virtusa goes to market throughout over 50 places spanning 19 nations in North America, Europe and Asia Pacific. Nearer to dwelling, regional attain covers Australia and New Zealand, alongside Southeast Asia, India and Sri Lanka.
Key prospects primarily embody Fortune 2000 companies, starting from banking and monetary companies to communications, healthcare and life sciences, in addition to insurance coverage, manufacturing, media and leisure, journey and hospitality sectors.
“This transaction represents a strategic evolution for Virtusa and a novel alternative to take our enterprise to new heights at a time of accelerating digital adoption,” stated Kris Canekeratne, chairman and CEO of Virtusa.
“The advantages of this transaction prolong to all Virtusa stakeholders, together with our shareholders, who will obtain instant and substantial money worth, in addition to to our staff members, since BPEA has an exemplary monitor file of valuing revolutionary and proficient world groups and supporting and empowering the companies during which it invests. With a powerful companion in BPEA, we’ll solidify our place on the forefront of digital transformation for years to return.”
As outlined by Canekeratne, the board of administrators acquired an “unsolicited proposal from an celebration” to amass the enterprise on 20 July. Following receipt of the supply, the board subsequently authorised engagement with different potential strategic consumers and monetary sponsors relating to a possible acquisition of Virtusa.
As a part of this course of, the organisation signed non-disclosure agreements with 5 events and engaged with two others.
After an unbiased evaluation of the options obtainable – “together with the worth creation alternative by means of continued execution of the corporate’s strategic plan” – the Virtusa board “unanimously” accepted the supply on the desk from BPEA.
“Via this transaction, we’re happy to maximise worth and ship a major, instant money premium to Virtusa’s shareholders,” added Rowland T. Moriarty, lead unbiased director at Virtusa.
“This announcement is the end result of a course of by Virtusa and our monetary advisors, which included engagement with strategic and monetary events relating to a possible transaction, and, after an intensive evaluation, the board unanimously concluded that this all-cash premium transaction with BPEA achieved the board’s goal.”
Based in 1997, BPEA is recognised as one of many largest unbiased non-public fairness companies in Asia with roughly $20 billion of property underneath administration.
“Expertise is constant to drive market evolution at an unprecedented tempo, creating new alternatives in addition to complexities,” added Jimmy Mahtani, managing director of BPEA. “Virtusa’s world staff of proficient professionals, software program engineering heritage, and deep area experience place it uniquely to assist enterprises throughout industries speed up their most strategic digital and cloud transformation initiatives.”