Cambridge Solutions to raise $35 million

Cambridge Solutions, the Rs 1,500 crore software services and business process outsourcing provider, is looking at raising around $35 million (Rs 140 crore) to fund its expansion through preference allotment. The company is expected to finalise this allotment on October 30, 2007.  

According to sources in the company, a financial investor is expected to come in at this point of time. Subsequently, a strategic partner is also expected to play come in who will play a significant role going forward in this company. No official comments were available from the company. During early 2006, Cambridge had raised $30 million from Indopark Holdings, a subsidiary of Merrill Lynch.

The company in which Ramesh Vangal, the entrepreneur who straddles businesses ranging from shipping to ayuveda to software, holds around 13 per cent stake, is also preparing the ground for the entry of this strategic partner.  

Cambridge is putting together a series of measures to unify the various entities. For starters, the BPO arm which is under Cambridge Integrated Services is being brought under Cambridge Solutions fold, while  MatrixOne India, a software service provider with focus on India is also being integrated into Cambridge Solutions.

According to information available, companies such as HCL and global PE funds like Carlyle had earlier shown interest to take a stake in this firm, but eventually dropped out on valuation differences.