Coforge’s board of directors have approved the acquisition of a 54% stake in Cigniti Technologies at a per share price of Rs 1,415, the company on Thursday said in its filing to the exchanges. The acquisition process is expected to be completed by Q2FY25.
Coforge has agreed to enter into a share purchase agreement with the promoters and select public shareholders of Cigniti subject to execution of definitive agreements and completion of certain identified conditions precedent, the filing said.
The acquisition of Cigniti will not only help Coforge grow into a $2 billion firm by FY27 but the ensuing synergies will help the latter improve its operating margins by 150 – 250 bps in this timeframe, the company claimed.
The Mumbai-headquartered IT solutions & technology consulting services company has cited three reasons behind the move. First, the acquisition will create three new scaled up verticals – retail, technology and healthcare. Second, it will help Coforge realise its objective of scaling up its presence across South-West, Mid-West and Western US markets, and thirdly it will address significant opportunities that the proliferation of AI is creating for specialised
assurance services.
The company also announced its March quarter earnings today after market hours where it reported a consolidated revenue of Rs 2,358.50 crore which was up 8.6% from Rs 2,170 crore in the corresponding period of the previous financial year. On a sequential basis, it was up by 1.5%.
The profit after tax (PAT) for the quarter stood at Rs 223.70 crore which was up 94.8% in the year-on-year basis from Rs 115 crore.
Company’s board has also declared fourth interim dividend of Rs 19 per equity share for the financial year 2023-24.
