Nov. 5, 2015, 3:37 PM
- Virtusa (NASDAQ:VRTU) is buying a majority stake in Polaris Consulting & Services, an Indian IT services provider, for $270M. The deal features a 51.7% stake and a mandatory open offer to buy up to 26% of Polaris' outstanding shares from public shareholders.
- Polaris has 7,650 employees, and produced pro forma revenue of $150M over the six months ending Sep. 30. The deal is expected to close in Virtusa's March quarter, and be financed with both cash and debt. $300M worth of financing commitments have been lined up.
- Polaris is expected to contribute ~$70M in revenue during the March quarter, and be dilutive by $0.08 to non-GAAP EPS (factors $0.07 in dilution from debt interest). The purchase is expected to be slightly dilutive to FY17 (ends March '17) EPS.
- Shares have more than given back the Wednesday gains seen following Virtusa's Q3 beat.
Jan. 6, 2014, 4:16 PM
- Virtusa (VRTU +1.9%) acquires Swedish treasury/asset management consulting outfit TradeTech Consulting Scandinavia for $20M in cash and up to $4M in earn outs. The firm has 60 employees with a business centered in Nordic countries.
- Management expects TradeTech to contribute revenue of $4.2M in FQ4, with EPS unaffected inclusive of $800K in acquisition-related amortization. The transaction is expected to be accretive to EPS for FY2015.