Virtusa to be bought out in $2.0 billion cash deal

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Virtusa Corp. announced Thursday a deal to be acquired by Baring Private Equity Asia (BPEA) in a deal valued at $2.0 billion. The digital engineering and information technology company’s stock was up 4.8% in premarket trading prior to a trading halt for news. Under terms of the deal, BPEA will pay $51.35 in cash for each Virtusa share, which is 26.8% more than Wednesday’s closing price of $40.50. The deal is expected to close in the first half of 2021. Virtusa’s stock has dropped 10.7% year to date through Wednesday, while the S&P 500 has gained 5.2%.
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