US-based Infogain Corp, a company backed by PE major ChrysCapital, has acquired Blue Star Infotech Ltd’s (BSIL) IT operations in a deal worth ₹180 crore. The acquisition, which is expected to close by the end of 2015, will help the San Francisco-based company expand into newer verticals.
ChrysCapital, which made a $63-million investment in Infogain, will finance the transaction. Blue Star Infotech is the IT business of air-conditioning and commercial refrigeration major Blue Star.
Post-acquisition figuresOn completion of the acquisition, the combined entity will have more than $150 million in revenue, close to 4,000 employees and eight delivery locations globally, BSIL said in a regulatory filing.
“BSIL’s IT assets are an ideal fit for Infogain, with the vision of creating a leading new age digital services platform with combined capabilities in cloud, mobility, SAP, analytics and product engineering. We expect the combined company to grow to half a billion dollars in revenues, through organic and inorganic growth, within the next five years,” said Sanjay Kukreja, Managing Director of ChrysCapital.
Following the acquisition, BSIL will retain the real estate business and other assets, valued about ₹96.7 crore. Avendus Capital was the financial advisor and Talwar Thakore & Associates the legal counsel to BSIL.
Wilson Sonsini Goodrich & Rosati is serving as the legal counsel to Infogain.
“This acquisition will align BSIL’s IT business with a larger peer, thereby strengthening its position in the industry,” said Sunil Bhatia, Chief Executive Officer and Managing Director of Blue Star Infotech.