IT firm Datamatics Global Services Ltd announced on December 9, that its wholly-owned subsidiary, Lumina Datamatics Ltd, will acquire a 100 percent stake in TNQ Tech Private Ltd, a Chennai-based digital publishing technology and services provider.
The acquisition will be executed in two phases under definitive agreements signed on the same day. In the first tranche, Lumina Datamatics will acquire an 80 percent stake for Rs 336 crore by December 31, 2024. The remaining 20 percent will be acquired by July 31, 2026, subject to EBITDA performance and other conditions specified in the agreement.
In a filing to the stock exchange, Datamatics stated: “Lumina Datamatics Ltd, a material wholly-owned subsidiary of Datamatics Global Services Ltd, has agreed to acquire 100% of TNQ Tech Private Ltd, a Chennai-based digital publishing technology and services company renowned for quality, efficiency, and innovation. The transaction will be completed in one or more tranches through the purchase of shares from existing shareholders.”
Icici Securities acted as the exclusive financial advisor on the transaction.
TNQ Tech, known for its AI-enabled publishing solutions catering to global publishers and academic institutions, reported a turnover of Rs 289.49 crore for the fiscal year ending September 2024. The acquisition strengthens Datamatics’ position as a leading player in the digital publishing space and expands its workforce to over 6,500 employees globally, the company said.
Operating across India, Europe, and North America, TNQ Tech offers pre-press publishing, design services, and software solutions. Its expertise will complement Datamatics’ end-to-end content management capabilities, further enhancing its digital content offerings.
The deal, free of related-party conflicts, aligns with Datamatics’ strategy to broaden its global footprint and bolster its presence in the digital publishing sector. Post-acquisition, TNQ Tech will operate as a step-down subsidiary of Datamatics Global Services.
Shares of Datamatics Global Services Ltd closed at Rs 641 on December 9, up Rs 13.60 or 2.17 percent on the BSE.
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