The announcement was made during market hours today, 1 June 2011

Meanwhile, the BSE Sensex was up 73.68 points, or 0.40%, to 18,576.96

On BSE, 67,036 shares were traded in the counter with pending buy orders of 26,595 shares at maximum limit. The scrip had an average daily volume of 4,070 shares in the past one quarter.

The stock hit a high of Rs 37.85 and low of Rs 32.90 so far during the day. The stock had a 52-week high of Rs 72.05 on 6 September 2010 and a 52-week low of Rs 30.50 on 26 May 2011.

The scrip had underperformed the market over the past one month till 31 May 2011 falling 15.07% as compared to the Sensex's fall of 3.31%. The stock also underperformed the market in the past one quarter, sliding 10.37% as compared to the Sensex's return of 3.81%.

The small-cap IT services firm has an equity capital of Rs 111.40 crore. Face value per share is Rs 10.

Cambridge Solutions in a press release said that Cambridge Integrated Services Group Inc, USA (CISGI) incurred operational losses continuously over recent years due to continued decline in revenue generated in the business. As a result of the unsatisfactory returns and significant future commitments of the CISGI business, the board of directors of Cambridge Solutions at its meeting held on 31 May 2011 approved the sale of the workers compensation claims, managed care, consumer claims, professional liability claims, the structured settlements operations of CISGI, virtually all of CISGI's contracts, to Sedgwick Claims Management Services, Inc (Sedgwick).

Meanwhile, CISGI and Sedgwick will also enter into a transition services agreement to facilitate a smooth handover of the operations. The transaction will be reflected as a discontinued operation in the Q2 June 2011, Cambridge Solutions said.

Cambridge Solutions further informed that the consideration of $22.7 million arising from the sale of CISGI's contracts will be paid in cash on 31 May 2011 by Sedgwick of which $3 million will be held in escrow for up to 18 months.

Cambridge Solutions reported consolidated net loss of Rs 13.80 crore in Q1 March 2011, much lower than a net loss of Rs 59.02 crore in Q4 December 2010. Net sales declined 13.42% to Rs 237.88 crore in Q1 March 2011 over Q4 December 2010.