Date: June 25, 2024
Press Release No. 28 of 2024-25
In a significant move within the IT and IT-enabled services (ITES) sector, the Commission has approved the acquisition of a substantial equity stake in Cigniti Technologies Limited by Coforge Limited. This acquisition, which will see Coforge acquiring at least 50.21% and potentially up to 54% of Cigniti’s shareholding on a fully diluted basis, is set to reshape the landscape of IT services in India.
Transaction Details
The proposed acquisition involves the execution of share purchase agreements and a mandatory open offer as per the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulatory framework ensures that the acquisition process is transparent and fair, safeguarding the interests of all stakeholders involved.
About Coforge Limited
Coforge Limited, a public company listed on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE), is a prominent player in the IT and ITES industry. Coforge and its affiliates provide a wide range of IT services across various sub-segments in India, making it a formidable entity in the sector. The company’s strategic move to acquire a controlling stake in Cigniti Technologies underscores its commitment to expanding its market presence and enhancing its service offerings.
About Cigniti Technologies Limited
Cigniti Technologies Limited, also a public company listed on NSE and BSE, is known for its comprehensive IT and ITES services. With a robust portfolio that includes software testing, quality engineering, and digital transformation services, Cigniti has established itself as a key player in the industry. The acquisition by Coforge is expected to leverage Cigniti’s strengths, driving synergies that will benefit both companies and their clients.
Implications of the Acquisition
The acquisition of Cigniti by Coforge is poised to create a more integrated and efficient service delivery model within the IT sector. The combined expertise and resources of both companies are expected to enhance innovation, improve operational efficiencies, and provide clients with a broader range of high-quality services. This strategic move is likely to lead to better market competitiveness and increased value for shareholders.
Commission's Decision
The Commission’s approval is a crucial step in the completion of this acquisition. The detailed order from the Commission will outline the specific terms and conditions, providing further clarity on the regulatory aspects of the transaction. Stakeholders are advised to stay tuned for the detailed order, which will be released in due course.
Conclusion
The approval of Coforge Limited's acquisition of a significant equity stake in Cigniti Technologies Limited marks a pivotal moment in the IT and ITES industry in India. This strategic acquisition is expected to foster growth, innovation, and enhanced service delivery, benefiting clients, shareholders, and the broader market. As the transaction progresses, stakeholders can look forward to a more dynamic and competitive IT services landscape.
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