Coforge DPA NA Inc. enters into asset purchase agreement with OptML Inc

Coforge DPA NA Inc., a wholly owned step-down subsidiary of Coforge Limited has agreed to enter into an asset purchase agreement with OptML Inc. and its shareholders to acquire customer contracts, key managerial personnel, employees and sub-contractors/vendors of OptML Inc. (collectively, the "Asset Purchase Agreement") subject to completion of conditions precedent as per Asset Purchase Agreement.

The turnover of OptML for CY 2023 is USD 10.8 million (INR equivalent 896.4 million at exchange rate of USD1=INR83).

The group is focused to enhance its presence globally. With this approach, the company has identified a CDH (Customer Decision Hub) implementation partner for Pega and leverage its capabilities to expand into many of its existing clients and to add future prospects. OptML is identified as such prospective asset which has built AWS based AI/ Data Science capabilities. With this acquisition, the group will be able to leverage the abovementioned capabilities and expand across various Coforge accounts.

The Company is acquiring customer contracts, key managerial personnel, employees and sub-contractors/vendors of OptML Inc. with initial payout of USD 6.6mn for 51% stake and remaining to be paid based on achievement of financial performance as Revenue and EBITDA multiples as per Asset Purchase Agreement. The consideration will be paid in multiple tranches by March 2028.

OptML Inc is a company incorporated in USA and is primarily engaged in the business of providing advisory technical design system integration and testing services for Pega systems in USA. The Turnover of the business being acquired from OptML Inc for CY21, 22 and 23 is USD 8.7 million, USD 12.2 million and USD 10.8 million, respectively.

Shares of Coforge Limited was last trading in BSE at Rs. 6071.55 as compared to the previous close of Rs. 5975.10. The total number of shares traded during the day was 14608 in over 4133 trades.

The stock hit an intraday high of Rs. 6114.10 and intraday low of 5840.05. The net turnover during the day was Rs. 87681891.00.

Source : Equity Bulls

Keywords

Coforge INE591G01017 CoforgeDPANAInc AssetPurchaseAgreement OptMLInc