Infosys buys Citicorp's stake in Progeon

Infosys buys Citicorp's stake in Progeon

Indian software house Infosys Technologies is acquiring the 23% stake that Citicorp currently holds in its BPO unit, Progeon Limited, for US$115.1 million in cash.

Progeon provides BPO services to global 1000 companies and has over 7000 employees. The fast-growing company posted net profit of $21.1 million for the financial year ended March 2006. Sales increased almost 100 per cent to $85.4 million compared with $42.9 million in 2005.

Citigroup's exit from the business comes as Infosys looks to integrate the BPO offering within its IT services portfolio as a seamless package.

In a statement, Infosys says it will buy all of Citi's holdings in Progeon, which amounts to 8.75 million shares, for a consideration of approximately US$115.13 million. The deal marks a tidy piece of business for Citi, which is understood to have invested some $23 million in Progeon.

The consideration will be paid in cash and the transaction is expected to be completed by July 2006.

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