Citigroup merges Indian IT unit with Polaris Software Lab
23 May 2002 | 4838 views | 0
Citigroup's Indian technology subsidiary OrbiTech Solutions is to merge its operations with Chennai-based Polaris Software Lab Limited.
Under the terms of a Memorandum of Understanding (MoU) signed by the two companies, the shareholders of OrbiTech will receive approximately 14 newly issued Polaris shares for every 25 shares held in OrbiTech by them, giving the merged entity a current value of approximately INR 2700 Crores. Polaris shareholders will own approximately 46 per cent and OrbiTech shareholders will own 54 per cent of the merged company.
The new merged entity, which will retain the name of Polaris Software Lab Limited, will have 3800 employees and combined revenues of over Rs. 600 Crores. Arun Jain will continue as chairman, managing director and CEO of the company.
Jain comments: “The high pedigree OrbiPack framework, which has the capability of processing over 10 million customer transactions, provides us the necessary space to leverage the large relationship mining expertise of Polaris. This will ensure that the new Polaris will emerge as the most comprehensive services and solutions provider in the banking, financial services and insurance space.”