Blue Star Infotech Ltd (BSIL), an entity of the Blue Star Group, today announced the sale of its IT business to Infogain Inc, a ChrysCapital portfolio company, for an aggregate consideration of Rs 180.80 crore.
BSIL will sale of its IT business to Infogain Inc. The aggregate consideration for the IT business of BSIL and its subsidiaries in USA, UK and Singapore under the transaction will be Rs 180.80 crore, payable upon completion of the sale, a company statement said here.
BSIL will retain a real estate business and other assets, the fair value of which is expected to be around Rs. 96.7 crore, it added.
Following the completion of BSIL's IT business sale, it is proposed to merge BSIL with Blue Star with effect from April 1, 2015, subject to shareholder approval of the respective companies. In effect, by the way of the above merger, the residual operations of BSIL, namely a real estate business, together with other assets, will get integrated with Blue Star, it said.
Ashok M Advani, Chairman, Blue Star said, "The proposed merger enables the utilisation of capital that flows in to fund growth of Blue Star's core businesses and improve returns thereby creating long term sustainable value for all shareholders. It will also strengthen the balance sheet and provide financial stability in a volatile market."
"BSIL's IT assets are an ideal fit for Infogain with the vision of creating a leading new age digital services platform with combined capabilities in Cloud, Mobility, SAP, Analytics and Product Engineering," ChrysCapital Managing Director Sanjay Kukreja said.
Blue Star forayed into the IT space in 1983. In 2000, the Blue Star Group executed a strategic shift to hive off its IT business into an independent company, Blue Star Infotech, as this business necessitated specialised focus and was significantly different from its core business.
