Cognizant is reportedly eyeing Polaris software service division, which approximately valued at Rs 2121 crore in all cash deal. Polaris will retain products division. Nevertheless, the deal will go through only after the demerger completes. Meanwhile, the valuation will be decided based on spilt on products and service business and is likely to be valued 3 times EBITDA. However, Polaris is also in talks with other entities too for its software service division.
Polaris’ software service division contributed to 70% of company’s revenue. The company’s net profit grew by 38.04% at Rs 59.06 crore for the quarter ended March 2013 as compared to Rs 42.78 crore of previous same quarter. Its revenue witnessed a 10.70% growth at Rs 472.97 crore for the quarter as compared to Rs 427.24 crore during the year-ago period.
Polaris is a full-spectrum Financial Technology major, using technology as an enabler to drive unprecedented operational productivity in Retail, Corporate and Investment Banking. Polaris services over 200 banks across the world, including 9 of the top 10 banks, with a comprehensive suite of products, services and consulting offerings.