Sagarsoft (India) Limited to acquire 100% stake in IT CATS, LLC for Rs. 16.06 crores

The Board of directors of Sagarsoft (India) Limited at its meeting held on today, have considered and approved a proposal to acquire 100% stake in IT CATS, LLC, USA at a value of Rs.16.06 Crores through swap of shares for consideration other than cash by issue of equity shares of the company by way of preferential allotment at a price not below Rs.254/- per equity share or at a price as calculate under SEBI (ICDR) Regulations, 2018 ("Proposed Transaction"), subject to shareholders and other applicable regulatory approvals for the proposed transaction and subject to compliance with all applicable regulations and in accordance with the provisions of Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, ('SEBI ICDR Regulations'), applicable FEMA Regulations and other applicable laws as amended and also approved the execution of definitive agreement in connection with the Proposed Transaction.

IT CATS LLC is a limited liability company incorporated in USA in 2004 and later acquired by Mr.Satish Kalva in 2012 which is a full-service IT consulting company with a broad range of technical skills, including but not limited to ERP, client/server and web based application and database development and have a wide range of professional experience and can function in various roles from Programmers, QA, Testers, Business Analysts to Project Managers throughout the project life cycle.

The team of experienced recruiters and managers have the capability to vet resources at several levels including technical skills, functional skills and checking on other common human factors that affect the overall health of the client's project.

Mr.Satish Kalva continues to drive the company into a fully-fledged Information Technology Services company serving Fortune 500 companies. His leadership and broad based experience in Technology & Industry ensures continued growth and overall success.

The acquisition is a step towards expanding its business operations and enhancing the IT consulting capabilities which are an integral part of IT business by adding staffing strategical development, agile program management and organizational change management capabilities which allow to provide end-end digital services to its customers.

The board approved a proposal to issue 2,00,000 equity shares of the Company at a price not below Rs.254/- per share or at a price as calculate under SEBI (ICDR) Regulations, 2018 on preferential basis to the entities belonging to promoters and non promoter group in accordance with the provisions of Chapter V of the SEBI (ICDR) Regulations, 2018 and applicable provisions of the Companies Act, 2013 and rules made thereunder.

A Meeting of the Members of the Company will be held for seeking their approval for the above proposals, the date of which will be fixed in due course.

Shares of Sagarsoft (India) Ltd was last trading in BSE at Rs.173.9 as compared to the previous close of Rs. 158.1. The total number of shares traded during the day was 14921 in over 83 trades.

The stock hit an intraday high of Rs. 173.9 and intraday low of 173.9. The net turnover during the day was Rs. 2594761.

Source : Equity Bulls

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