Virtusa Completes ConVista Buy
The IT services firm expands its competencies by acquiring the pay and claims processor.
Virtusa Corp., the listed, Massachusetts-based global IT services firm completed its deal to buy ConVista Consulting, a privately-held pay and claims processor.
The deal to buy ConVista cost Virtusa slightly less than $25 million in cash; calls seeking comment were not returned by press time.
The deal comes on the heels of Virtusa’s late 2009 deal to buy InSource LLC, a separate play to integrate the privately-held tech consulting firm working in the insurance and healthcare fields.
Virtusa spent about $7.3 million to acquire InSource last year. The company uses an offshore delivery model to provide a range of IT services. In 2007, the company went public, pricing shares at $14 each. Shares rose, but then slid with the global recession. Currently, Virtusa shares are trading at about $8.35.
Other payment services deals have emerged where private equity firms sought financial services assets; the most recent one to do so was the announcement of the Marlin Equity Partners deal to buy Unisys Corp. pay processing assets and rename the entity Burroughs Payment Systems to make future deals.
Parthenon Capital Partners bought a stake in loanDepot, an online mortgage originator; Navigation Capital bought PrePaid Solutions and Aquiline Capital Partners also led an investment in Belgian payments system Clear2Pay NV.
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