Coforge is set to acquire 54 percent stake in Cigniti Technologies at Rs 1,415 per share, the company informed the exchanges on May 2.
The share price of Rs 1,415 represent a premium of 3 percent over May 2's closing price of Cigniti at Rs 1372.65 on BSE.
The firm, which has signed a definite agreement with the IT services management company, believes the acquisition will improve company’s operating margins by 150-200 bps by FY27 and help grow to become a $2- billion company.
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Coforge said it believes the acquisition will lead to the creation of three scale-up verticals- retail, technology, healthcare. It will also improve its footprint in the south-west, mid-west and western US markets and help Coforge address the significant opportunities that the proliferation of AI is creating for specialized assurance services, the company added.
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The deal is likely to be completed by the second quarter of FY25, subject to regulatory approvals. It will also activate an open offer according to Sebi regulations, which will enable Coforge to consolidate its position in the IT services company.
The company has also declared its fourth interim dividend of Rs 19 and set May 15 as the 'record date', the filing showed.
Meanwhile, the firm's March quarter profit after tax stood at Rs 223.7 crore, which was up by 94.8 percent compared to Rs 115 crore in the same period last year. The revenue for the quarter was at Rs 2,358.5 crore, up 8.6 percent year-on-year, the filing showed. For the full year, the revenue jumped 14.5 percent to Rs 9,179 crore on a YoY basis. Ebitda margin was at 19 percent, sequentially higher by 102 bps.
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