IT solutions organization, Koforg Limited, has signed definitive agreements to acquire a controlling interest in SLK Global Solutions Pvt Ltd, which provides BPM and digital solutions to the financial services industry worth ₹ 918 crore.
SLK Global has domain expertise in the banking and insurance sectors in North America. It has marquee clients with a fifth third bank which is also a significant minority shareholder.
Coforge will initially acquire a 60% stake in SLK Global, with the founders of SLK Global exiting altogether. Fifth Third Bank’s stake in the company will come down to 40%. After two years, Koforge will acquire an additional 20% stake from Fifth Third Bank.
As part of the transaction, Fifth Third Bank has committed to remaining a significant customer of SLK Global and has also committed a base volume in the five years beginning from FY22.
“The transaction is being funded by Coforg by a combination of internal accretion and external lending,” the company said.
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