Virtusa Corporation has announced that, on July 1, 2011, Virtusa acquired substantially all of the assets of ALaS Consulting LLC (ALaS). ALaS provides Virtusa with approximately 150 practitioners, including former senior Wall Street professionals with significant industry experience, driving critical initiatives in areas such as regulatory compliance; trading desk operations improvement and controls; software package selection, programme management and functional testing, and increasing automation to reduce costs.
Virtusa acquired substantially all of the assets of ALaS for an aggregate cash consideration of $27.8 million, of which 10% has been held back by Virtusa for a period of 12 months as security for the sellers. 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 $4,000,000 in shares of restricted stock from Virtusa's stock option and incentive plan, not to exceed 250,000 shares, to these new Virtusa employees. The shares will vest annually over a four-year period.
Samir Dhir, Senior VP / Global Delivery Head and Head of India Operations, Virtusa Corporation, said, "Bringing ALaS into the Virtusa fold is very exciting for us from an India perspective. India has been a growing market for BFS consulting and IT services. With the acquisition of ALaS, we will 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 BFS organizations. We will also be able to leverage ALaS' strong domain expertise to train and develop an extended pool of offshore business analysts who can then support delivery of capital markets solutions, both at client sites and in the Indian market." Transaction expenses are expected to be approximately $450,000, of which approximately $375,000 have been incurred in the first fiscal quarter ended June 30, 2011.
