Virtusa Acquires ALaS Consulting LLC
July 5, 2011 – 11:43 amWESTBOROUGH, Mass., July 05, 2011 (BUSINESS WIRE) –Virtusa Corporation VRTU +1.79% , a universal IT services firm that offers a extended spectrum of business consulting and outsourcing services, voiced that on July 1, 2011, Virtusa acquired significantly all of the properties of ALaS Consulting LLC (“ALaS”), a heading provider of consulting and instructive services to financial services companies.
The merger expands Virtusa’s heading location inside of the promissory note and financial services industries (BFS) by adding funds markets and investment promissory note domain expertise, consulting and module administration skills. ALaS provides Virtusa with roughly 150 practitioners, inclusive one-time comparison Wall Street professionals with poignant attention experience, pushing vicious initiatives in areas such as regulatory compliance; trade table operations alleviation and controls; software package selection, module administration and organic testing; and stepping up industrialisation to lower costs.
ALaS now functions with heading universal financial institutions and maintains interaction with key preference makers inside of these organizations. Virtusa will supply the amalgamated customer bottom an integrated offering, inclusive low domain knowledge, consulting-led solutions, technology doing and attention heading universal smoothness execution. Virtusa will aim this integrated gift to facilitate complexities and hasten business outcomes for promissory note and financial services institutions.
Kris Canekeratne, Virtusa’s Chairman and CEO, stated, “We are gratified to acquire the ALaS group to Virtusa. Erik DiGiacomo, President of ALaS, will lead our new funds markets line of business. This merger will serve capacitate Virtusa to pick out and govern transformational programs, take on the downstream technology doing and intensify Virtusa’s vital location opposite its BFSI customer base.”
Financial Overview of Transaction
Under the conditions of the item buy agreement, Virtusa acquired significantly all of the properties of ALaS for an total money care of $27.8 million, of that 10% has been hold back by Virtusa for a time of 12 months as safety is to sellers’ retribution obligations beneath the item buy agreement. As segment of the transaction, significantly all of the employees of ALaS, inclusive the administration team, agreed practice with Virtusa. Virtusa has agreed to situation an total of up to $4,000,000 in shares of limited batch from Virtusa’s batch choice and inducement plan, not to surpass 250,000 shares, to these new Virtusa employees. The shares will vest annually over a 4 year period.
For the mercantile year finished Mar 31, 2012, Virtusa administration now expects ALaS to minister income of roughly $24.0 million to $26.0 million. Virtusa moreover now expects the merger to be accretive to mercantile year 2012 gain per widely separated share by $0.01 to $0.05, inclusive of contract and amortization expenses. Transaction costs are approaching to be roughly $450,000 of that roughly $375,000 have been incurred in the initial mercantile entertain finished June 30, 2011.
About Virtusa Corporation
Virtusa provides end-to-end data technology (IT) services to Global 2000 companies. These services, that add IT consulting, focus maintenance, development, systems formation and managed services, precedence a unique Platforming methodology that transforms clients’ businesses by IT rationalization. Virtusa helps customers hasten business outcomes by consolidating, rationalizing and modernizing their core customer confronting processes in to a or more core systems.
Virtusa delivers cost-effective solutions by a universal smoothness model, requesting modernized methods such as Agile and Accelerated Solution Design to make sure that its solutions encounter the clients’ requirements. As a result, its customers concurrently lower their IT operations cost whilst stepping up their capability to encounter varying business needs.
Founded in 1996 and headquartered in Massachusetts, Virtusa has operations in North America, Europe and Asia.
(C) 2011 All rights reserved. Virtusa, Accelerating Business Outcomes(SM) and all other connected logos/service names are possibly purebred trademarks or trademarks of Virtusa Corporation in the US, UK, EU, India and/or Sri Lanka. All other firm and service names are the skill of their particular holders.
About ALaS Consulting
ALaS, www.alascorp.com , provides financial services consulting for heading universal financial institutions. ALaS is orderly to residence and finish the vicious business problems faced by universal funds markets firms, investment and sell banks, broker-dealers, riches administration and substitute investment companies together with the vendors that serve them. Advisory practices include: Strategy and Business Development; Sales, Trading and Product Control; Compliance and Regulatory; and Operations Process Improvement.
Forward-Looking Statements
Certain statements done in this press let go that are not formed on chronological data are forward-looking statements that are done pursuant to the protected port supplies of the Private Securities Litigation Reform Act of 1995. This press let go contains demonstrate or pragmatic forward-looking statements relating to, amid other things, Virtusa’s expectations regarding management’s predict of financial performance, the approaching benefits of the ALaS Consulting LLC (“ALaS”) acquisition, the predict of financial opening for ALaS, the expansion of Virtusa’s business, and management’s plans, objectives, and strategies. These statements are conjunction promises nor guarantees, but are theme to a accumulation of risks and uncertainties, many of that are over Virtusa’s control, that could result in real results to deviate materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, amid other things: Virtusa’s coherence on a limited number of customers together with customers located predominantly in the United States and United Kingdom and in strong industries; Virtusa’s capability to sinecure and keep sufficient adequately lerned IT professionals to encouragement its operations; Virtusa’s capability to spread its business or effectively succeed growth; restrictions on immigration or changes in immigration laws; the loss of any key associate of Virtusa’s comparison administration team, stepping up contest in the IT services outsourcing industry; Virtusa’s capability to capture and keep customers and encounter their expectations; Virtusa’s capability to maintain profitability or maintain essential engagements; Virtusa’s capability to cushion and confederate the operations of ALaS ; not anticipated merger connected costs and disastrous belongings on Virtusa’s reported results of operations from acquisition-related charges; Virtusa’s capability to accomplish approaching synergies and working efficiencies in the acquisitions the Company has consummated, inclusive the ALaS acquisition, inside of approaching time-frames or at all; quarterly fluctuations in Virtusa’s earnings; customer terminations or constrictive delays, or delays in income approval in any stating period; Virtusa’s capability to successfully succeed its billing and function rates and its targeted on-site to offshore smoothness mix; technological innovation; Virtusa’s capability to effectively succeed its facility, infrastructure and capacity needs; regulatory, legislative and legal developments in Virtusa’s operations areas; diplomatic or economic unstable in India or Sri Lanka; any shrinking or withdrawal of taxation benefits supposing to Virtusa by the governments of India and Sri Lanka, or new legislation by such governments that could be toxic to Virtusa; salary acceleration and increases in supervision mandated benefits in India and Sri Lanka; telecommunications or technology disruptions; worldwide economic and business conditions; currency swap rate fluctuations of the Indian and Sri Lankan rupee, the U.S. dollar and the U.K. bruise sterling; and the sensitivity of the marketplace cost of Virtusa’s familiar stock. Existing and potential investors are cautioned not to place unjustified reliance on these forward-looking statements, that verbalise usually as of the date hereof. Virtusa undertakes no responsibility to refurbish or correct the data contained in this press release, whether as a result of new information, future events or environment or otherwise. For extra avowal regarding these and other risks faced by Virtusa, see the avowal contained in Virtusa’s open filings with the Securities and Exchange Commission, inclusive Virtusa’s Annual Report on Form 10-K is to mercantile year finished Mar 31, 2011, and successive Quarterly Reports on Form 10-Q, as filed with the Securities and Exchange Commission.
SOURCE: Virtusa Corporation
Tags: investment companies