Virtusa Corporation, a US-based firm with huge presence in India, has acquired all of the assets of the New York-based ALaS Consulting LLC for a consideration of $27.8 million.
Virtusa, however, would hold back 10 per cent of the cash consideration for 12 months as “security for the sellers' indemnification obligations under the asset purchase agreement,” Mr Kris Canekeratne, Chairman and CEO of Virtusa, said here in a statement.
As part of the transaction, all employees of ALaS, including the management team, accepted employment with the acquirer. Virtusa would issue shares worth $4 million from its stock option and incentive plan to the new set of Virtusa employees. Mr Erik DiGiacomo, President of ALaS, will lead Virtusa’s new capital markets line of business.
Virtusa expected that ALaS would contribute revenues in the range of $24-26 million for the financial year ended March 31, 2012. “The acquisition will helps us expand our strengths in banking and financial services industries by adding capital markets and investment banking domain expertise, consulting and program management skills,” he said.