Coforge Ltd., an IT solutions organisation, has signed definitive agreements to acquire a controlling interest in SLK Global Solutions Private Ltd., that offers BPM and digital solutions to the financial services industry for ₹918 crore.
SLK Global has domain expertise in the banking and insurance segments in North America. It has marquee clients including with Fifth Third Bank which is also a significant minority shareholder.
Coforge shall initially acquire 60% stake in SLK Global, with SLK Global’s founders completely exiting. Fifth Third Bank’s stake in the company will be reduced to 40%. After two years Coforge will acquire an additional 20% stake from Fifth Third Bank.
As part of the transaction, Fifth Third Bank has committed to remaining a significant customer of SLK Global and has also committed a base volume over five years starting FY’22.
“The transaction is being funded by Coforge with a combination of internal accruals and external borrowings,” the company said.
Source: Read Full Article