Mon, 10 May 2021

Noida (Uttar Pradesh) [India], April 13 (ANI): IT solutions major Coforge has signed definitive agreements to acquire 60 per cent stake in SLK Global Solutions for Rs 918 crore.

With this, SLK Global's founder Fifth Third Bank will be reduced to 40 per cent. Coforge said it will acquire another 20 per cent from Fifth Third Bank after two years.

The transaction is being funded by Coforge with a combination of internal accruals and external borrowings.

SLK Global is a business process transformation firm offering digital solutions for financial services industry. It has deep domain expertise in the banking and insurance segments in North America.

"We are very excited to welcome SLK Global and about 7,000 employees into the Coforge family. We expect very strong business synergies to be generated through this transaction," said Coforge's Chief Executive Officer Sudhir Singh.

"This differentiated, high growth, margin accretive business further strengthens our position in the North America financial services industry. SLK Global also provides Coforge with an attractive tier three India city delivery location," he said in a statement.

Coforge is a leading global IT solutions organisation, enabling clients to transform at the intersect of domain expertise and emerging technologies to achieve real-world business impact.

SLK Global reported consolidated revenue of 62 million dollars (about Rs 455 crore) during FY20 and is expected to report consolidated revenue of 73 million dollars (about Rs 536 crore) during FY21, representing a growth of about 15 per cent despite the impact of Covid-19.

The business has registered a three-year revenue CAGR of over 17 per cent. It is a highly profitable business and will be EBITDA margin accretive to Coforge.

KPMG acted as the advisor to Coforge and J Sagar Associates as its legal counsel on this transaction. Avendus Capital acted as the investment banker to all the sellers and Prabir Talati/Inflexion Advisers as the advisor to the Founders and SLK Global.

Quillon Partners acted as transaction counsel and Shardul Amarchand MangaldasCo acted as legal counsel to Fifth Third Bank.

(ANI)

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