Last year, R Systems International Ltd said it had entered into a definitive agreement to acquire Novigo Solutions, a specialist in low-code / no-code (LCNC) development and intelligent-automation services.
Also Read: Blackstone has made its second big tech acquisition in IndiaThe upfront cash consideration for the transaction is ₹400 crore, with an additional stock consideration linked to future Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) achievement, R Systems said in an exchange filing. The acquisition will be earnings-per-share (EPS) accretive for R Systems from the first year, it added.
The company said the acquisition creates a global digital product engineering services powerhouse with ₹2,060 crore revenue and ₹380 crore EBITDA, offering engineering, deployment and management of enterprise-scale fleets of AI agents under a single, governed platform.Novigo’s revenue grew at a compound annual growth rate (CAGR) of 44% over the last three years with 25% EBITDA margin and healthy free cash flow, R Systems said.
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The acquisition will integrate R Systems’ OptimaAI Suite with Novigo’s UiPath Diamond-tier automation practice and Microsoft Copilot Centre of Excellence, the company said. The acquisition will also help R Systems expand its offerings in the Middle East region and gain delivery presence in Bengaluru and tier-2 cities such as Mangalore, it said.
Established in 1993, R Systems is a leading provider of digital IT services, particularly within the product engineering space. The company counts Amazon Web Service, Microsoft, and Google Cloud among its key clients. It has 18 delivery centres across North America, Europe, Asia Pacific and India
Shares of R Systems International Ltd ended at ₹260.40, up by ₹0.90, or 0.35%, on the BSE.
(Edited by : Jomy Jos Pullokaran)
