R Systems Shares Rise 17% After Acquiring IT Firm Novigo

Shares of R Systems International Ltd. rose over 17% on Friday after it announced a deal to acquire Mangalore-based Novigo Solutions, a specialist in low-code/no-code (LCNC) development and intelligent-automation services.

The upfront cash consideration for the transaction is Rs 400 crore, with an additional stock consideration linked to future EBITDA achievement, according to an exchange filing.

Acquisition Benefit

R Systems said Novigo has been growing at a 44% revenue CAGR over the last three years. It add capabilities in niche Software Product Engineering and Agentic AI domain.

The deal presents an attractive acquisition multiple and EPS accretive for R Systems starting from the first year.

Multiple synergies and market expansion to the Middle East and delivery expansion in southern India have also been cited by the company. Novigo's management team will continue to be a part of the combined platform.

R Systems' annual revenue will go from Rs 1,797 crore to Rs 2,061 crore, an increase of 14.7%. Combined compounded growth will be 17.3% compared to 14.7% for R Systems.

Shares of R Systems rose as much as 17.3% intraday to Rs 496.9 apiece. The stock has fallen 1% in the last 12 months and 7% so far this year.

R Systems is a global product engineering and digital solutions provider. W

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