Virtusa acquires eTouch
Virtusa Corporation has entered into an equity purchase agreement to acquire all of the outstanding shares of eTouch Systems Corp and eTouch Systems Pvt. Ltd (“eTouch India,” together with eTouch US.
The Company completed the acquisition recently and expects to complete the acquisition of eTouch India in the next several days, pending the final settlement of eTouch India shares. Headquartered in Fremont, CA, eTouch provides cutting edge digital engineering, digital marketing, cloud, analytics.
The acquisition of eTouch expands Virtusa’s digital engineering expertise and broadens itsdigital service offerings. Italso establishes a strong innovation hub in the heart of Silicon Valley and allows Virtusa to better address the needs of both fast-growing tech companies and global enterprises. Kris Canekeratne, Chairman and CEO of Virtusa, stated, “The eTouch acquisition solidifies our growing leadership in the digital space, and will have a positive impact on both Virtusa and eTouch clients. There is strong alignment between the two firms, from our shared approach to digital engineering and innovation to how we address client engagement, talent development and a strong engineering-first culture.”
Ani Gadre, Founder and CEO of eTouch, stated, “We believe this is a tremendous opportunity to deliver on eTouch’s vision of offering digital engineering services on a global scale. Virtusa and eTouch share a strong engineering and innovation culture, as well as an unwavering focus on our clients’ success.”
Under the terms of the purchase agreement, Virtusa will acquire all of the outstanding shares of eTouch for approximately $140 million in cash, subject to certain adjustments, with up to an additional $15 million set aside for retention bonuses to be paid to eTouch management in equal installments on the first and second anniversary of the transaction.
The purchase price will be paid in three tranches with $80 million paid at closing, $42.5 million on the 12-month anniversary of the close of the transaction, and $17.5 million on the 18-month anniversary of the close of the transaction, subject in each case, to certain adjustments.