A wholly owned subsidiary of Happiest Minds Technologies Ltd. has merged US-based Aureus Tech Systems LLC. with itself, according to an exchange filing on Monday.
Aureus' merger, which came into effect from Dec. 14, was done via Happiest Minds Inc. In May, the US-based subsidiary had acquired Aureus, which became a step-down wholly owned subsidiary of Happiest Minds Technologies, it said.
Aureus, which belongs to the IT industry, is engaged in the business of providing Azure native digital product engineering services in insurance and reinsurance, and healthcare and life sciences industries, it said. "Since the transferor company is a wholly owned subsidiary of the transferee company, no shares of the transferee company shall be allotted pursuant to merger in exchange of the shares of the transferor company."
The transaction will lead to a simplified management structure, which in turn will result in better administration, reduction in costs and standardisation of business processes, according to Happiest Minds.
The move will also lead to greater integration and improve the IT services firm's financial strength. This will lead to maximisation of shareholder value and also the financial position of the merged entity, the filing stated.
The merger will also lead to pooling of resources, resulting in synergies of operations, optimisation of logistics and cost savings. The deal will also lead to simplification of the group's structure, leading to reduced statutory compliances, it added.
In the second quarter of the current financial year, Happiest Minds had posted a 3% sequential fall in net profit to Rs 50 crore. Revenue rose 12% to Rs 522 crore in the September quarter from Rs 464 crore from the previous quarter.
Operating margin was at 13.2%, while the earnings before interest and taxes rose 9% to Rs 69 crore in the second quarter from Rs 63 crore in the June quarter.
Shares of Happiest Minds closed 0.26% lower at Rs 743.45 apiece on the BSE before the announcement, compared to a 0.47% decline in the benchmark Sensex.
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