Infosys Technologies is paying out $115.13 million in cash to buy out Citicorp's 23% stake in its BPO subsidiary Progeon. Citi had invested $20 million in 2002 in Progeon.The deal values Progeon at close to $500 million, and Infosys is paying close to six times Progeon's topline of $85.4 million for the year ended March 31, 2006.Under the agreement, Infosys will buy all of Citi's 23% holdings, on a fully diluted basis, in Progeon amounting to 8.75 million shares for a consideration of approximately $115.13 million (Rs 518 crore at an exchange rate of Rs 45 to the dollar). The transaction is expected to be completed by July 2006. Progeon's sales increased almost 100% to $85.4 million in FY06 when compared with $42.9 million in FY05.Progeon has issued a guidance of $125 million for the current year. It employs 7,000 employees as on March 31, 2006 - up from 3,000 in FY05 - and is hoping to add another 6,000 employees during the current year.
