CPPIB to take 24% stake in global digital, IT company
BY Staff | September 30, 2020
The Canada Pension Plan Investment Board is committing US$300 million to take an approximate 24 per cent stake in Virtusa Corp., a global digital and information technology services company.
The proposed acquisition, alongside Baring Private Equity Asia, follows the announcement earlier this month that Virtusa and BPEA entered into a merger agreement under which funds affiliated with BPEA will acquire all outstanding shares of common stock of Virtusa for US$51.35 per share in an all-cash transaction valued at about US$2 billion.
“This is a significant opportunity to acquire an interest in a highly differentiated player in the fast-growing IT services industry, alongside our long-standing partner BPEA,” said Frank Su, managing director and head of private equity for Asia at the CPPIB, in a press release. “Virtusa’s ability to partner with a blue-chip client base to rapidly build scale in an industry with strong fundamentals will deliver long-term value for CPP contributors and beneficiaries.”
The transaction is expected to close in the first half of 2021, subject to the approval of Virtusa’s shareholders and customary regulatory requirements.