Virtusa Corporation, an IT service company, has acquired Apparatus, a provider of IT infrastructure services, for approximately $37.4 million.
Under this agreement, Virtusa will pay $34.2 million in cash and approximately $3.2 million in earn-out and contingent consideration based upon Apparatus’ full achievement of certain revenue and profit milestones for the fiscal year ending March 31, 2016.
Virtusa will also issue an aggregate of up to $3.5 million in restricted stock awards from Virtusa’s stock option and incentive plan to certain Apparatus employees
With this acquisition Virtusa will deliver remote infrastructure management (RIM) services from Apparatus’s RIM center.
With the addition of Apparatus’s Kore Managed IT solution platform, Virtusa will expand its Infrastructure Management Services (IMS).
Apparatus can cost effectively manage IT infrastructure for its clients as Apparatus deliver its Kore Managed IT Solutions through a technology platform which is supported by optimized processes and solution frameworks.
The Kore platform includes cloud/virtualized infrastructure management, unified communication platforms, collaboration and content management, data management, backup and disaster recovery and mobile device management.
“This acquisition will help increase our total addressable market and allow us to deliver expanded IT outsourcing service offerings to our clients. In addition, this acquisition is an important step in strengthening Virtusa’s position as an end-to-end IT services provider, as we continue to capture larger transformational programs,” said Kris Canekeratne, chairman and CEO of Virtusa.
Apparatus provides consulting, service design and delivery of infrastructure management services and help its clients improve the operational efficiencies of their IT investments.
Last year in January, Virtusa acquired all the outstanding shares of TradeTech consulting Scandinavia AB and its subsidiaries for approximately $24 million. This acquisition enhanced Virtusa’s asset and treasury management expertise.