Virtusa Corp. (Nasdaq: VRTU) is buying information technology business Polaris Consulting & Services Ltd. for $270 million to form a company that provides IT services to the banking and financial services industry.
The deal would combine Virtusa's consumer and retail banking expertise with Polaris' expertise in corporate and investment banking.
Polaris, headquartered in Chennai, India, provides digital enterprise, payments, risk and compliance and data and analytics services to the financial services industry, including global consumer banking, treasury and capital markets, global transaction banking, insurance and other businesses.
Westborough, Massachusetts-based Virtusa is a business consulting and IT outsourcing business.
J.P. Morgan (NYSE: JPM) was Virtusa's financial adviser for the deal, and Goodwin Procter, LLP and ALMT Legal Bangalore provided legal advice. Credit Suisse (NYSE: CS) was Polaris' primary financial adviser, and Spark Capital was co-adviser, while J Sagar Associates was legal counsel.
Dealmakers have been active with transactions across the financial services sector. On Nov. 4, Investcorp picked up Ssaris' hedge fund of funds assets to expand, and on Nov. 2, Visa said it would buy back Visa Europe. In October, Regions Financial Corp. (NYSE: RF) made a deal for mid-market investment bank BlackArch Partners to expand in M&A advisory services.
Expectations for financial services M&A remain high, according to Mergers & Acquisitions Mid-Market Pulse, a forward-looking sentiment indicator.