Blue Star Infotech sells IT business to Infogain for Rs 181 crore

Infogain Corp, an IT services company backed by private equity firm ChrysCapital, has acquired the IT business of Blue Star Infotech for Rs 180.80 crore.

"Blue Star Infotech's IT assets are an ideal fit for Infogain with the vision of creating a leading new-age digital services platform with combined capabilities in cloud, mobility, SAP, analytics and product engineering. We expect the combined company to grow to $500 million in revenues, through organic and inorganic growth, within the next five years," Sanjay Kukreja, Managing Director at ChrysCapital said.

[caption id="attachment_769983" align="alignleft" width="380"] Block deal[/caption]

Kapil Nanda, CEO of Infogain, will continue in his current role until July. Sunil Bhatia, Chief Executive Officer and Managing Director at Blue Star Infotech, will join Infogain's management team as its CEO designate, and will assume his new responsibilities as CEO of the combined entity on July 1, 2016. At that time, Kapil Nanda will transition to his role as full-time Executive Chairman.

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"The combined entity will have revenue of over $150 million, close to 4,000 employees and eight delivery locations globally," the company said in its statement.

Blue Star Infotech, which is listed on the Indian stock market, is the IT arm of air-conditioning and commercial refrigeration company Blue Star.