Bangalore BPO sold to UK firm
BANGALORE: At a time when most IT stocks have been hammered on the stock exchanges, Bangalore-based back office and IT services firm Cambridge Solutions Ltd has been able to sell its stake at premium of over 30 per cent to its current price to UK’s Xchanging plc.
On September 3, Cambridge’s share closed at Rs59.40 on BSE and NSE. The price being offered by British business process outsourcing firm Xchanging Plc is Rs81.25 per share.
Speaking to DNA Money from the UK over the phone, Satyen Patel, vice-chairman, Scandent Holdings Mauritius Ltd, said the buyer offered to pick up a stake in the Indian tech company at Rs81.25 per share.
“If you ignore the recent upsurge in the Cambridge share prices then it (price being offered by Xchanging) is at a premium of almost 70-80 per cent,” said Patel.
Patel attributes the higher valuation of Cambridge to its strong fundamentals, which has not been affected by external forces.
The company also makes a good strategic fit for Xchanging’s future growth.
“Even when the Sensex has been hammered, and IT stocks have taken a beating, we have survived the storm. Another reason is that our business is complementary to Xchanging given our strong presence in the US, Australia, India and Asia, while Xchanging is predominantly present in UK and Germany,” said Patel.
A statement issued by Xchanging says acquisition of Cambridge will give it a market presence in the US and Australia as well as a critical mass in its Indian offshore operation.
On Saturday, Xchanging announced its decision to buy 75 per cent stake in Cambridge Solutions Ltd for 83 million pounds ($147 million) in stock and cash.
The UK firm will pay Rs3.71 billion ($78.8 million) in cash and 15.2 million of its shares, equivalent to 7 per cent of Xchanging’s current capital.
As per Sebi’s takeover rule, Xchanging will offer to buy a 20 per cent stake from Cambridge’s minority shareholders.
Source : DNA India
BANGALORE: At a time when most IT stocks have been hammered on the stock exchanges, Bangalore-based back office and IT services firm Cambridge Solutions Ltd has been able to sell its stake at premium of over 30 per cent to its current price to UK’s Xchanging plc.
On September 3, Cambridge’s share closed at Rs59.40 on BSE and NSE. The price being offered by British business process outsourcing firm Xchanging Plc is Rs81.25 per share.
Speaking to DNA Money from the UK over the phone, Satyen Patel, vice-chairman, Scandent Holdings Mauritius Ltd, said the buyer offered to pick up a stake in the Indian tech company at Rs81.25 per share.
“If you ignore the recent upsurge in the Cambridge share prices then it (price being offered by Xchanging) is at a premium of almost 70-80 per cent,” said Patel.
Patel attributes the higher valuation of Cambridge to its strong fundamentals, which has not been affected by external forces.
The company also makes a good strategic fit for Xchanging’s future growth.
“Even when the Sensex has been hammered, and IT stocks have taken a beating, we have survived the storm. Another reason is that our business is complementary to Xchanging given our strong presence in the US, Australia, India and Asia, while Xchanging is predominantly present in UK and Germany,” said Patel.
A statement issued by Xchanging says acquisition of Cambridge will give it a market presence in the US and Australia as well as a critical mass in its Indian offshore operation.
On Saturday, Xchanging announced its decision to buy 75 per cent stake in Cambridge Solutions Ltd for 83 million pounds ($147 million) in stock and cash.
The UK firm will pay Rs3.71 billion ($78.8 million) in cash and 15.2 million of its shares, equivalent to 7 per cent of Xchanging’s current capital.
As per Sebi’s takeover rule, Xchanging will offer to buy a 20 per cent stake from Cambridge’s minority shareholders.
Source : DNA India