Global IT services major Virtusa Corporation Monday announced acquisition of TradeTech Consulting Scandinavia AB of Sweden for $25 million to expand its operations in Europe.
The US-based services provider, which has software development centres in Bangalore, Chennai and Hyderabad in south India, specialises in treasury and asset management for major financial institutions and MNCs, primarily in Nordic region.
"The acquisition expands our position in the banking, financial services and insurance (BFSI) sector by increasing our asset management and treasury services domain and domain expertise," Virtusa chief executive Kris Canekeratne said in a statement here.
Virtusa is funding the transaction through a $25-million secured credit from JP Morgan Chase Bank.
The deal envisages Virtusa to acquire TradeTech shares for $20 million in cash and $4 million in earn-out consideration upon achieving certain revenue and profit during 2014 calendar year.
"TradeTech expertise will help us increase our addressable market and provide our combined client bases with expanded service offerings and establish in the Nordics market with consulting and outsourcing service," Canekerante said.
The buyout of TradTech and its subsidiaries will also enable Virusa to extend its presence across Europe, especially in Nordic countries, where IT services market is set to increase outsourcing.
"We believe the take-over offers an opportunity to extend our services globally, as we share a common culture, committed to innovation and service excellence that will help our combined clients accelerate their business outcomes," said TradeTech chief executive Joakim Wiener.
The 18-year-old Virtusa delivers cost-effective solutions through a global delivery model, applying agile and accelerated solution design to ensure its solutions meet clients' requirements, including lower IT operations cost while increasing their ability to meet changing business needs.
