Polaris to sell its IT services business?

Polaris Financial Technolgy despite being a tier 2 IT Services and products company has always hogged the media limelight. The company has had its share of breaking news at regular intervals. Going by a report in Times of India, it says the company is planning to hive off its IT services and cloud computing business while retaining its product arm. The report says, "Polaris, which counts Citigroup as its largest client, could consolidate the $330-million revenue IT services business with one of the latter's top outsourcing vendors, besides selling the smaller $15-million cloud division to other suitors like Japan's NTT."

The report citing on market speculation says that, "Polaris would seek at least $450 million (over Rs 2,470 crore) for the IT services unit, with operating profit of around $45 million."

Citigroup being its biggest IT services clients for Polaris makes up for half of its IT services revenues.

Polaris vends its software products on its brand ‘Intellect Suite' makes for $ 100 mn turnover.

The company had denied the report and termed it as purely speculative.