Cambridge Solutions to raise $35mn

Cambridge Solutions, the Rs 1,500 crore software services and business process outsourcing provider, is planning to raise around $35 million (Rs 140 crore) to fund its expansion plans. The company is expected to finalise the allotments on October 30, 2007.

According to sources in the company, a financial investor is expected to come in at this point of time. A strategic partner is also expected to play a significant role, going forward, in the company. No official comments were available from the company.

Cambridge had raised $30 million from Indopark Holdings, a subsidiary of Merrill Lynch, in early 2006.

Ramesh Vangal, an entrepreuner who manages businesses ranging from shipping to ayuveda to software, holds around 13% stake in Cambridge.

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

According to information available, companies like HCL and global PE fund Carlyle had earlier expressed interest to take a stake in the firm, but eventually dropped out on differences over valuation.