Bengaluru- one of the IT companies Coforge Ltd is considering acquiring a controlling stake in SLK Global Solutions. The company provides the services of BPM (Business Process Management), and digital solutions to the financial services industry, for about INR 9.2 billion.
According to sources, Coforge is originally expected to acquire about 60 percent of the stake in SLK Global, and SLK Global’s founder completely leaves. Moreover, the Fifth-Third Bank’s stake in the company will be reduced to around 40% and will remain at this level for the next two years. The company will purchase an additional 20% stake in the Fifth Third Bank at the end of the next two years.
Moving further with the transaction part, Fifth Third Bank has also committed to dwelling a significant prospect of SLK Global with a minimum revenue commitment for the coming five years starting from the financial year 2022.
About SLK Global
The venture has over 7,000 employees, which will now be part of Coforge, and Fifth Third Bank, its long-standing customer and minority shareholders shall be one of the top five clients for the new joint venture functioning as a whole.
Meanwhile, while highlighting the right idea behind the acquisition, Sudhir Singh, CEO of Corforge said- “We expect very strong business synergies to be generated through this transaction. This differentiated, high growth, margin accretive business further strengthens our position in the North America financial services industry and our BPM business”. And added further- “Coforge’s technology and digital capabilities will be highly relevant to SLK Global’s customer base that includes several marquee names in the BFS and insurance industries, while the latter’s capabilities will enable Coforge to compete more effectively for deals that have a major BPM/BPO operations component. SLK Global also provides Coforge with an attractive tier 3 India city delivery location”.
Finally, 2021 was a year of new mandates, arrangements, acquisitions, and data breaches. But with all of this, the marketplace had a roller-coaster ride and explored a lot more opportunities and grabbed more customer base, while functioning as new mergers like Coforge, SLK, and Fifth Third Bank.
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