Blackstone-owned small-cap stock R Systems International surged 17% in intraday deals on Friday, August 22, following the announcement of the acquisition of Novigo Solutions and the board’s approval of ₹275 crore fundraising.
R Systems’ share price rallied 17.24% to the day’s high of ₹496.95 in intra-day deals today. As of 10.40 am, the small-cap below ₹500 was trading 13.27% higher at ₹480.10.
R Systems acquires Novigo Solutions — Key details
R Systems International Limited, post-market hours on Thursday, announced that it has entered into a definitive agreement to acquire Novigo Solutions, a specialist in low-code/no-code (LCNC) development and intelligent-automation services.
R Systems will acquire Novigo Solutions for an upfront cash consideration of ₹400 crore, along with an additional stock consideration linked to future EBITDA achievement, the company informed via exchange filing.
The acquisition will be EPS accretive for R Systems since year one, it added.
Novigo has been growing strongly and delivered 44% revenue CAGR over the last three years, with 25% EBITDA margin and healthy free cash flow.
