Following $2B acquisition, Virtusa founder & CEO to depart

Virtusa CEO Kris Canekeratne

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Kris Canekeratne, the founder of Southborough IT company Virtusa Corp., will leave his roles as chairman and CEO by June 30, an announcement which follows his company being acquired for $2 billion by financial services firm Baring Private Equity Asia.

“Twenty-five years ago, I began the journey of a lifetime," Canekeratne said in a press release. "In those intervening years, we built Virtusa into a recognized market leader partnering with blue chip brands across the globe in the rapidly growing digital engineering services market. Now we have begun a new chapter in our partnership with BPEA that will continue to evolve and provide even greater growth opportunities. With the added strength of BPEA’s ownership, the impressive performance of the business, and the strength of the leadership team we have in place, I’ve decided that it’s the right time for me to explore my next chapter. I am committed to working with BPEA, the Board and management team to ensure a smooth transition process.”

Virtusa's board has started a new search for a CEO, which is expected to be complete in the coming weeks, according to the announcement on Friday.

The board has already selected a new chairman to replace one of Canekertane's roles: Sander van ‘t Noordende, who worked at Irish consulting firm Accenture for 32 years, most recently as its head of products.

“I am delighted to join the Virtusa board as chairman," van ‘t Noordende said in a press release. "Virtusa is an exciting company with great clients and people, well positioned for a world in which digital business will be the norm. I am looking forward to joining the team and being part of the next chapter of Virtusa.”

Virtusa struggled last year, with its stock losing nearly 60% of its value from Feb. 20 to March 18. For the first quarter of the year, the company reported a $193,000 loss in its net income while revenues were down 6%. The second quarter was better, as the company grew profits to $7.7 million, compared to a loss of $200,000 the year before.