$2B acquisition of Southborough’s Virtusa completed
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Virtusa's Southborough headquarters
Information-technology company Virtusa, based in Southborough, has been acquired by financial services firm Baring Private Equity Asia in an all-cash purchase of all outstanding shares of common stock valued at $2 billion.
The acquisition was announced in September and took effect today, with Virtusa becoming a privately-held company and being removed from NASDAQ trading. The price per share that was paid out, which was unanimously approved by the Virtusa board of directors, represents a premium of approximately 27% to the closing price of Virtusa common stock on the date the acquisition was announced.
Baring Private Equity Asia was one of five companies that were evaluated for the acquisition.
“We were impressed by BPEA’s experience helping technology services companies like Virtusa, especially its track record of supporting and empowering the businesses in which it invests. We’re excited to partner with BPEA to solidify our position at the forefront of digital transformation for years to come,” Kris Canekeratne, chairman and CEO of Virtusa, said in a press release.
No details were given in the release pertaining to Virtusa personnel related to the acquisition, although the press release stated BPEA was committed to “building on [Virtusa’s] high performing technical talent base and investing in new digital capabilities.”
Virtusa struggled last year, with its stock losing nearly 60% of its value from Feb. 20 to March 18. For the first quarter of the year, the company reported a $193,000 loss in its net income while revenues were down 6%.
Founded in 1997, BPEA is one of the largest independent private equity firms in Asia with approximately $20 billion of assets under management. The firm has offices in China, India, Japan, Australian, Singapore and Los Angeles.
Virtusa was founded in Sri Lanka before moving to Southborough.
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