Software developer Bravura Solutions has paid $31.5 million for an information systems division of wealth management giant Citi.
Software developer Bravura Solutions has paid $31.5 million for an information systems division of wealth management giant Citi.
The Citi division, which is based in the Polish capital of Warsaw, has a three-year outsourcing contract with Citi. Bravura says the contract will deliver more than $15 million in revenue a year and give the company a European presence.
The company says it will pay for the acquisition with operating cashflow generated over three years, and will have an option to extend the contract once its initial term is up.
It also says the deal will boost earnings per share for the 2009 financial year, and should add 38 employees to the company’s payroll in Warsaw, but employee numbers are likely to increase over the next two years.
But the response to the deal was low-key, with the company’s stock closing up just two cents to 22 cents. Bravura’s shares have dropped 90% over the past year.
The deal comes after just a month after the collapse of a takeover bid for Bravura from private equity firm Ironbridge Capital. The firm has been unable to secure funding for the deal.
Bravura ranked ninth on the SmartCompany Dun & Bradstreet Industry Growth List for the IT sector.
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