Virtusa to launch Rs 590 cr open offer for Polaris from Mar 11

Technology outsourcing company Virtusa, which has acquired a majority stake in Polaris Consulting & Services, will make an open offer of Rs 590 crore to acquire additional 26 percent stake in the company.

The open offer at a price of Rs 220.73 apiece will start on March 11.

Virtusa Consulting Services Private Limited has completed acquisition of 51.7 percent stake in Polaris for about Rs 1,136.4 crore from Arun Jain, founder and chairman of Polaris, Orbitech Private Limited, and certain other minority stockholders, Virtusa said in a statement.

Virtusa makes "a cash offer of Rs 220.73 per share" to acquire up to "26,719,942 fully paid-up equity shares of the face value of Rs 5, constituting 26 percent of the voting share capital", Polaris, a mid-tier Indian IT firm, said in a filing to the BSE.

Upon closing of the mandatory offer period on March 28, 2016, Virtusa will own a 74.99 percent majority interest in Polaris (post full tender, and settlement of the tendered shares by April 12, 2016), Virtusa said.

In November last year, US-based Virtusa Corp had said that its subsidiary will acquire about 53 percent 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.

"Jitin Goyal will remain CEO of Polaris, and was appointed President, BFS, to lead Virtusa's and Polaris' business operations serving the banking and financial services verticals," Virtusa said.

Raj Rajgopal, President of Virtusa, has been appointed as President (ETS) and and will lead operations serving the insurance, communications & technology, and media, information and other verticals.

"In their respective roles, Mr Goyal and Mr Rajgopal will be responsible for executing Virtusa's and Polaris' growth strategies, which will include driving over USD 100 million of cumulative revenue synergies over the next three fiscal years from the business combination," it added.

Virtusa and Polaris combined have approximately 19,000 employees as of December 31, 2015.

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

The company's revenues for the third quarter stood at USD 150.6 million.