Mastek Acquires US-Based BizAnalytica For Global Footprint In Gen AI, Cloud
Mastek has acquired U.S.-based BizAnalytica for about Rs 140 crore to boost its Generative AI, and data and cloud capabilities.
Mastek Ltd. has made an acquisition at more than twice its income in the first quarter.
The digital transformation company—through its wholly owned subsidiary Mastek Inc.—has acquired US-based data services company BizAnalytica LLC for an upfront consideration of $16.72 million (about Rs 140 crore). That compares with the Rs 70 crore net profit clocked in the first quarter.
Revenue of the Ahmedabad-based IT firm rose 2.26% over the previous three months to Rs 725.25 crore in the quarter ended June 30, according to an exchange filing on Wednesday. Analysts tracked by Bloomberg had pegged the figure at Rs 730 crore.
Mastek Q1 Results: Key Highlights (Consolidated, QoQ)
Revenue up 2.26% at Rs 725.25 crore (Estimate: Rs 730 crore)
EBIT up 1.29% at Rs 107.29 crore (Estimate: 109.2 crore)
EBIT margin down 14 BPS at 14.79% (Estimate: 14.95%
Net profit down 3.41% at Rs 70.09 crore (Estimate: Rs 77 crore)
The company added 22 new clients in the April-June quarter but its active client base fell 6% sequentially to 436. Its order backlog—deals won but not yet realised—fell 1.7% quarter-on- quarter but rose 16% over the year ago to Rs 1,763 crore.
Separately, Mastek has appointed Umang Nahata as an additional director on its board, with effect from July 19, subject to approval of the board members. He was the founder and chief executive of Evosys—a company that Mastek acquired in 2020.
Deal Details
Mastek will make an upfront payment of $16.72 billion to acquire BizAnalytica. An earn-out payment—additional compensation to the business owner after a sale—of $0-24 million will be made, contingent on meeting specific targets.
BizAnalytica offers end-to-end data, cloud and modernisation solutions to help clients make data-driven decisions. Its clientele includes Snowflake, Databricks and Amazon.com Inc.’s cloud business Amazon Web Services.
That’s expected to enable Mastek to capitalise on the growing market potential of Generative AI, cloud services and data analytics.
“This acquisition marks a pivotal milestone in accelerating our presence in data engineering, cloud services and the rapidly evolving Gen AI domain,” Mastek CEO Hiral Chandrana said in a statement. “[It] will enable us to decomplex the cloud transformation journey for our clients…”
On Wednesday, shares of Mastek Ltd. rose 0.84% to Rs 2,170.90 apiece on the BSE even as the benchmark Sensex ended the day 0.45% higher at 67,097.44 points.
