BPO firm Cambridge Solutions has said it will sell off its US-based subsidiary’s Cambridge Integrated Services operations to Sedgwick Claims Management Services for $22.7 million (nearly Rs 101.9 crore).

Reacting to the announcement of the sale — which includes workers’ compensation and third party administration operations — shares of Cambridge Solutions surged 19.97 per cent to hit the upper circuit at Rs 37.85 apiece on the Bombay Stock Exchange.

In view of the unsatisfactory returns and significant future commitments of the Cambridge Integrated Services Group Inc (CISGI) business, the board of directors at its meeting held on May 31, 2011, approved the sale of the US workers’ compensation and third party administration operations of CISGI to Sedgwick Claims Management Services, Inc, Cambridge Solutions said in a filing to the Bombay Stock Exchange.

Further, the company added: “The consideration to be paid by Sedgwick is $22.7 million, which will be paid in cash on May 31, 2011, of which $3 million will be held in escrow for up to 18 months.”

The transaction will be reflected as a discontinued operation in Q2, 2011.

“Selling the CISGI operations to Sedgwick, the market leader, will provide our customers and employees with a good home for the future,” the Cambridge Solutions Executive Director and Vice-Chairman and acting Chief Executive Officer, Mr Ken Lever, said.

Sedgwick Claims Management Services Inc is a provider of innovative claims and productivity management solutions.

Related Topics