IT major Coforge today announced that it will acquire a 54% stake at Rs 1,415 per share in Cigniti Technologies, a prominent player in the software testing and quality assurance domain. The company made the announcement along with its Q4FY24 results.
The acquisition of Cigniti is not just a transaction but a strategic investment aimed at propelling Coforge towards achieving a US$ 2 billion revenue milestone by FY27. One of the key drivers behind this acquisition is the belief that it will significantly improve Coforge’s operating margins by 150-200 basis points by FY27 itself.
Speaking about the rationale behind the acquisition, Coforge highlighted several key factors:
- Vertical Expansion: By integrating Cigniti’s expertise, Coforge aims to create a scaled vertical approach, particularly in technology and healthcare sectors. This move aligns with their strategic vision of diversifying and strengthening their market presence across different industry segments.
- Global Reach: Cigniti’s established footprint in Western markets offers Coforge a strategic advantage in expanding its global reach and catering to a broader client base.
- AI Opportunities: With the rapid proliferation of Artificial Intelligence (AI), there is a growing demand for specialized assurance services. Coforge sees this acquisition as an opportunity to tap into this market segment and provide tailored solutions to meet evolving client needs.
