Shareholders of SourceHOV and Novitex are rolling 100 percent of the current equity and will be the majority holders in the new company, to be named Exela Technologies, the companies said on Tuesday.

"Our combination with Novitex fundamentally increases our scale, making us a more strategic partner to customers in their quest for digital transformation," Ron Cogburn, chief executive of SourceHOV said in a statement.

Novitex is owned by certain funds managed by affiliates of Apollo Global Management LLC, while SourceHOV is majority owned by HandsOn Global Management.

The deal will be funded through a combination of $1.35 billion in new debt financing, cash from Quinpario and rollover of equity among others, the companies said. The deal also includes committed financing from Royal Bank of Canada and Credit Suisse.

The new company will have eight board members, including three nominated by HandsOn Global Management, two by Apollo and three independent directors.

Exela Technologies will be listed on the Nasdaq Global Select Market.

(Reporting by Vishal Sridhar in Bengaluru; Editing by Gopakumar Warrier)