NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News  » Business » Vangal, US firm tie up for Cambridge

Vangal, US firm tie up for Cambridge

September 14, 2007 02:26 IST

Entrepreneur-investor Ramesh Vangal is likely to team up with US-based business process outsourcing (BPO) firm Sutherland Global Services to wrest majority control in Cambridge Solutions. Vangal holds 13 per cent stake in Cambridge.

Sources close to the development said the US company, which has an estimated annual revenue of $700 million (Rs 2,800 crore), would acquire nearly 46 per cent stake in Cambridge (formerly known as Scandant Solutions).

It will vest the responsibility of the day-to-day management with Vangal, once the acquisition is over. The deal size is estimated to be around Rs 600 crore ($150 million).

Vangal, whose business straddles liquor, shipping and banking, confirmed that he wanted to control this company. "Yes, I want to go ahead with a strategic partner with financial muscle," he said.

He, however, declined to comment on teaming up with Sutherland for the purpose. Sutherland could not be contacted for comments. Cambridge Solutions declined to comment on the issue.

The Cambridge Solutions stock today rose 1.94 per cent to close at Rs 113.25 on the Bombay Stock Exchange (BSE). At this price, the company's market capitalisation stands at Rs 1,190 crore.

If the deal goes through, Sutherland will have to come out with an open offer. Under the laws, any acquisition beyond 15 per cent should be followed by a mandatory 20 per cent open offer.

Raghuvir Badrinath in Bangalore