Virtusa, a global business consulting and IT outsourcing company announced it has entered into a definitive agreement to acquire a majority interest in Polaris Consulting & Services, a global provider of IT solutions primarily to the banking and financial services industry segment, for approximately $270 million.

Virtusa intends to finance the transaction through a combination of cash on its balance sheet and debt.

Virtusa said it has secured commitments for senior secured debt financing of $300 million from J.P. Morgan and Bank of America in support of the transaction, comprised of a $100 million revolving credit facility and a $200 million multi-draw term loan.

Interest under this facility accrues at a rate per annum of LIBOR plus 2.75%, subject to step-downs based on Virtusa’s ratio of debt to earnings before adjusted EBITDA. Virtusa intends to enter into an interest rate swap agreement to minimize interest rate exposure. The term of the facility is five years from date of close.

The definitive credit agreement governing the facility will include a maximum debt to adjusted EBITDA ratio and a minimum fixed charge ratio. This facility will replace Virtusa’s existing $25 million credit facility with JP Morgan Chase Bank.