Coforge to acquire 60% stake in SLK Solutions for Rs918 crore

Coforge will acquire an additional 20% stake from Fifth Third Bank after the completion of two years.

1 min read . Updated: 12 Apr 2021, 06:46 PM IST Swaraj Singh Dhanjal

Fifth Third Bank’s stake in the company will be reduced to 40% and shall continue at that level for the next 2 years

MUMBAI : IT services firm Coforge Ltd, earlier known as NIIT Technologies, on Monday said that it has signed definitive agreements to acquire a controlling interest in SLK Global Solutions Pvt Ltd, a business process transformation enterprise offering BPM and digital solutions for the financial services industry.

SLK Global has deep domain expertise in the banking and insurance segments in North America, the statement said. It enjoys multiple long-standing and scalable relationships with clients, including with Fifth Third Bank, which in addition to being the largest customer, is also a significant minority shareholder.

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Coforge will initially acquire 60% stake in SLK Global, with SLK Global’s founders completely exiting, a statement said, adding that Coforge will pay Rs918.3 crore for acquiring the 60% stake. Fifth Third Bank’s stake in the company will be reduced to 40% and shall continue at that level for the next 2 years. Coforge will acquire an additional 20% stake from Fifth Third Bank after the completion of two years.

"We expect very strong business synergies to be generated through this transaction. This differentiated, high growth, margin accretive business further strengthens our position in the North America Financial Services Industry and our BPM business. Coforge’s technology and digital capabilities will be highly relevant to SLK Global’s customer base that includes several marquee names in the BFS and Insurance industries, while the latter’s capabilities will enable Coforge to compete more effectively for deals that have a major BPM/BPO operations component. SLK Global also provides Coforge with an attractive tier 3 India city delivery location", said Sudhir Singh, Chief Executive Officer, Coforge Ltd.

KPMG acted as the advisor to Coforge, while Avendus Capital acted as the investment banker to all the sellers.

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