Coforge has concluded the previously announced open offer to purchase additional 4.69% stake in Cigniti Technologies at a price of Rs 1,415 per share, taking aggregate shareholding to 32.68%, the IT services company said in an exchange filing on November 20.
Before the Sebi-mandated open offer, Coforge held 27.98% in Cigniti.
Read More: Coforge - Time to pocket gains as the stock surges?
"12,81,239 equity shares (aggregating to 4.69% of paid-up share capital of Cigniti) have been tendered by certain public shareholders, out of which 12,80,374 equity shares have been credited to our demat account and 865 equity shares are in the process of being credited for which consideration is already paid by the Company," Coforge said in the exchange filing.
Coforge said it expects to complete the acquisition by Q3FY25, subject to closing of the Purchase Agreement.
Read More: Coforge to acquire 100% of Cigniti, acquisition to help it grow to a $2 bn firm
Shares of Coforge are higher by 31% so far this year, and those of Cigniti Technologies have gained over 32% in 2024.
Cigniti is in the business of Quality and Digital engineering services for global clients, with a delivery centre in India. It recorded a turnover of Rs 814.47 crore for FY24, and profit after tax of Rs 94.79 crore.
Coforge acquired Cigniti to expand its capabilities in digital assurance and engineering services in the retail, healthcare, and hi-tech verticals. It aims to grow the revenue to $2 billion by FY27 by leveraging Cigniti's expertise, while also improving operating margins through synergies between the two companies. The acquisition allows Coforge to ramp up its client base and enter new segments.
The acquisition of Cigniti is expected to expand Coforge’s North America revenue by about 33%, the company had said.
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