The shares of a Leading Digital Engineering & Cloud Transformation provider gained 3 percent after the company announced its plan to acquire a US based AI firm BizAnalytica LLC.
Mastek Ltd shares were trading at Rs 2,235 a share on the NSE at 12:10 p.m., up 64.05 Rs or 2.96 percent, with a market capitalization of Rs 6,852 crores.
As per Company’s BSE filings,Mastek announced that its wholly-owned step-down subsidiary, Mastek Inc, will acquire a 100 percent share in Boston, USA-based BizAnalytica LLC, a leading provider of data cloud and modernisation solutions.
The purchase consideration includes an upfront payment of $16.72 million and an earn-out between $ 0 to $ 24.0 million subject to achieving financial targets. On achievement of the target set for the period of 3 years, the total earn-out payment will be in the range of $15.3 million.
The transaction is planned to be completed on or before September 30, 2023, or within an extended time period mutually agreed upon by both parties.
From the acquisition,Mastek’s global Data Cloud Services and Generative AI capabilities will be strengthened.
Mastek ltd is a digital engineering and cloud transformation company that serves clients in healthcare, life sciences, retail, manufacturing, financial services, and government sectors.
Mastek Ltd reported a 27 percent increase in revenue from operations to Rs 725 crore in Q1FY24 compared to the previous year quarter. However, net profit fell 13 percent to Rs 73 crore over the same time period.
Company’s revenue climbed by 17 percent year on year, rising from Rs 2,183 crore in FY 21-22 to Rs 2,563 crore in FY 22-23. Within the same time period, net profit fell by 7 percent, from Rs 333 crore to Rs 310 crore.
As per shareholding pattern,The promoters owns 36.75 percent of the firm, foreign institutional investors own 13.14 percent, and retail investors own 45.3 percent,
Written by Omkar Chitnis
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