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Baring PE acquiring Virtusa Corp (NASDAQ: VRTU)

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  • Baring PE might be buying Virtuas’ excellent widespread shares for $51.35 per share in an all-cash transaction
  • The $51.35 per share implies the 16.2x Agency Worth / Trailing Twelve Months EBITDA as of June 30, 2020.
  • The transaction is anticipated to shut within the first half of 2021.

On September 10, Virtusa Corporation (NASDAQ: VRTU) introduced that it had signed a definitive merger settlement with Baring Personal Fairness Asia (BPEA). The Baring PE might be acquiring all Virtuas’ excellent widespread inventory for $51.35 per share in an all-cash transaction, translating into roughly $2.0 billion deal valuation.

The $51.35 per share implies the 16.2x Agency Worth / Trailing Twelve Months EBITDA as of June 30, 2020. The acquisition quantity represents round 29% and 46% premium over 30 Days and 60 Days volume-weighted common costs of Virtusa Corporation (NASDAQ: VRTU) inventory, respectively. On July 20, the Virtusa Board of administrators obtained an unsolicited acquisition proposal from an occasion.


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Rowland T. Moriarty, Lead Unbiased Director of Virtusa’s Board of Administrators, stated, “By this transaction, we’re happy to maximise worth and ship a big, quick money premium to Virtusa’s shareholders. At the moment’s announcement is the end result of a course of by Virtusa and our monetary advisors, which included engagement with strategic and monetary events concerning a possible transaction, and, after a radical overview, the Board unanimously concluded that this all-cash premium transaction with BPEA achieved the Board’s goal.”

Headquartered in Massachusetts, Virtusa is a world supplier of digital engineering and knowledge expertise outsourcing providers. Virtusa supplies expertise consulting and implementation, enterprise course of administration (BPM), mobility, enterprise consulting, cloud, and utility outsourcing providers. The corporate has places of work all through the Americas, Europe, Center East and Asia with international supply centres in the US, India, Sri Lanka, Hungary, Singapore, Poland, Mexico and Malaysia.

Revenue Profie - Virtusa Corporation Investor Presentation
Supply: Virtusa Company Investor Presentation
Revenue Profie - Virtusa Corporation Investor Presentation
Supply: Virtusa Company Investor Presentation

Baring Personal Fairness Asia is without doubt one of the largest impartial PE corporations in Asia with an asset underneath administration of about $20 billion. Ever because the inception of BPEA in 1997, the personal fairness agency has made six prior investments within the info expertise providers trade. 

The Orogen Group holds 108,000 shares of Virtusa Convertible Most popular Inventory. The Orogens’ holding of 108,000 shares of Convertible Most popular Inventory is convertible into 3,000,000 shares of Virtusa Widespread Inventory. It represents roughly 10% of the voting energy within the firm. The Orogen Group CEO Vikram Pandit, who’s an impartial member of the Board, has entered into the voting settlement the place he might be voting in favour of the transaction. Equally, the administrators and government officers, collectively holding roughly 5.7% of the voting energy within the firm, might be voting in favour of the transaction. 

The transaction is anticipated to shut within the first half of 2021.

The transaction completion is topic to the approval of the Virtusa shareholders’ approval, obligatory regulatory necessities, together with approval from The Committee on International Funding within the U.S. (CFIUS), and customary closing situations.


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