Infogain to acquire Blue Star Infotech IT biz

Blue Star Infotech Ltd (BSIL) on Tuesday said Infogain Inc, a ChrysCapital portfolio company, will acquire its IT business for Rs 180.80 crore. The combined entity will have revenue of over $150 million, close to 4,000 employees and multiple global delivery centres, BSIL said in a BSE filing. 

It will provide customers with digital transformation platform with capabilities in cloud, mobility, SAP, analytics, product engineering and test automation from locations in the US, the UK, Middle East, Singapore, Malaysia and India. "The aggregate consideration for the IT business of BSIL (Rs 81.70 crore) and its subsidiaries in USA (Rs 36.50 crore), UK (Rs 21.80 crore) and Singapore (Rs 40.80 crore) under the transaction will be Rs 180.80 crore, payable upon completion of the sale," it said. BSIL would retain a real estate undertaking, a certain amount of cash and tax receivables, it added. The fair value of these net assets to be retained by BSIL is expected to be around Rs 96.7 crore. The company's net revenue for the quarter ended June 30, stood at Rs 40.85 crore, <g data-gr-id="18">while</g> for FY14-15, the same stood at Rs 138.21 crore.

In a separate filing, BSIL said the Board has decided to purchase the entire business of the company's wholly-owned subsidiary Blue Star Infotech Business Intelligence and Analytics by October 31 for Rs 6.5 crore. "Following the completion of the sale, it is proposed to merge BSIL with Blue Star with effect from April 1, 2015 under the provisions of section 391-394 of the Companies Act 1956 through a <g data-gr-id="15">court approved</g> scheme of amalgamation," it said.