Knowledge and finance BPO firm Azure Styx Infosoft is close to buying 49 percent stake in Philadelphia's Citizen Financial Mortgage (CFM) for Rs 100 crore.
“The deal, signed two weeks ago, is worth Rs 100 crore and it is a combination of cash (to be raised through internal accruals and private equity participation) and support services”, Azure Styx Infosoft's Chief Executive Officer Dushyant Joshi told PTI here today.
CFM, set up five years ago, has licence to function in 16 states of the US. In its 45 branches, it employs 290 workers and has a turnover of USD 200 million. The US subprime crisis created an opportunity, he said.
“Azure Styz Infosoft has also been into mortgaging business for quite sometime. The subprime market crash gave us an opportunity which we didn't let go waste. Hence, we made a strategic acquisition of CFM because it has the potential of giving us a business of Rs 32 to Rs 40 crore every year,” Joshi stated.
The CFM executives will be arriving here shortly and the formalities relating to the deal will be completed in a couple of months, Joshi said.
Azure Styz Infosoft has three units in India and one in China and is planning to expand its business through acquisition of a Chennai-based BPO and by opening two new units in Mumbai and Pune. The company's revenues will go up from Rs 40 crore to Rs 100 crore after the acquisition of the US-based CFM.
Source: Economic Times