R Systems International Ltd shares surged more than 11% today after the company announced a definitive agreement to acquire Novigo Solutions, a specialist in low-code/no-code (LCNC) development and intelligent automation services. As of 9:16 AM, the shares were trading 11.52% higher at Rs 472.30.
The acquisition is expected to create a combined entity with annual revenue of around ₹2,060 crore (~$240 million) and EBITDA of about ₹380 crore (~$45 million). Management highlighted that the transaction will be EPS accretive from the first year itself.
Novigo has delivered strong financial performance, reporting a 44% revenue CAGR over the last three years with an EBITDA margin of 25% and healthy free cash flow. The deal includes an upfront cash consideration of ₹400 crore, along with additional stock-linked payments based on future performance.
The strategic integration will combine R Systems’ OptimaAI Suite with Novigo’s UiPath Diamond-tier automation expertise and Microsoft Copilot Centre of Excellence, strengthening the company’s positioning in enterprise AI, automation, and intelligent workflows.
According to the company, the merged platform will be able to design, deploy, and manage enterprise-scale AI agent fleets under a single governed system, aligning with the growing trend of enterprises shifting IT budgets toward autonomous, compliance-ready AI solutions.
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