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Infosys Technologies announced it would buy the entire 23 per cent stake of Citicorp International Finance Corporation in its business process outsourcing arm Progeon for $115.13 million (Rs 518 crore). It's an all cash deal and would be completed by July this year. This deal values Progeon at around $500 million (Rs 2,250 crore). Progeon was started in 2002 with $20 million venture funding from Citigroup. This gives Citi a 5.7 times return in four years.

For FY06, Progeon posted revenues of $85 million (Rs 382 cr) and Infosys provided a guidance of $125 million (Rs 562 cr) for FY07. The enterprise valuation of Progeon is a four-times multiple of its FY07 revenue guidance. Progeon is the country’s 10th-largest third-party BPO firm as per the last Nasscom ranking for 2004-05, having over 7,000 employees. It is mainly in the non-voice business, constituting around 80 per cent.