Business consulting and outsourcing services provider Virtusa has acquired all of the assets of the financial-services consulting firm ALaS Consulting for $27.8m in cash.
The deal will expand Virtusa’s presence within the banking and financial services industries (BFS) by adding capital markets and investment banking expertise, consulting and programme management skills to its services.
AlaS will now become the capital markets services division of Virtusa and the move is intended to deliver the combined client base an integrated offering, including deep domain knowledge, consulting-led solutions, technology implementation and efficient global delivery execution, Virtusa said.
Virtusa said AlaS adds about 150 practitioners, including former senior Wall Street professionals with significant industry experience.
As part of the acquisition, substantially all AlaS employees, including the management team, accepted employment with Virtusa.
Virtusa has agreed to issue up to $4m in shares of restricted stock to the new Virtusa employees, and the shares will vest annually over a four year period.
Virtusa expects ALaS to contribute revenue of $24m to $26m and to increase earnings per diluted share by 1 cent to 5 cents for the fiscal year ending 31 March 2012.
The company will book about $375,000 of the estimated $450,000 in transaction expenses in the fiscal first quarter ended June 30 this year.
