Virtusa acquires ALaS of U.S.

Virtusa Corporation, an IT services provider, has acquired substantially all of the assets of ALaS Consulting LLC (ALaS) of the U.S., a provider of consulting and advisory services to financial services companies.

The acquisition expands Virtusa's position within the banking and financial services industries. ALaS provides Virtusa with about 150 practitioners, including former senior Wall Street professionals. ALaS currently works with major global financial institutions and maintains relationships with key decision-makers within these organisations. Virtusa will provide the combined client base an integrated offering, including deep domain knowledge, consulting-led solutions, technology implementation and industry leading global delivery execution. Virtusa will target this integrated offering to simplify complexities and accelerate business outcomes for banking and financial services institutions.

Samir Dhir, Senior Vice-President /Global Delivery Head and Head of India Operations, Virtusa Corporation, said with the acquisition of ALaS, Virtusa would be able to combine deep industry expertise in investment banking/capital markets with robust technology implementation capabilities to offer strong, end-to-end solutions to India-based banking financial services organisations.

Under the terms of the asset purchase agreement, Virtusa acquired substantially all of the assets of ALaS for an aggregate cash consideration of $27.8 million, of which 10 per cent has been held back by Virtusa for 12 months as security for the sellers' indemnification obligations under the asset purchase agreement.

As part of the transaction, substantially all of the employees of ALaS, including the management team, accepted employment with Virtusa. Virtusa has agreed to issue an aggregate of up to $4 million in shares of restricted stock from Virtusa's stock option and incentive plan, not to exceed 2.50 lakh shares, to these new Virtusa employees. The shares will vest annually over a four-year period.

For the fiscal year ended March 31, 2012, Virtusa management currently expects ALaS to contribute revenue of about $24-26 million.