Coforge had on Thursday said it is acquiring 54% share in Cigniti from promoters and other shareholders at Rs 1,415 per share.
The acquisition process is expected to be completed by the second quarter of FY25, Singh told ET in an interaction.
While this is Coforge’s biggest acquisition yet, Singh said, “Three years back when we were $628 million, we acquired a $73-million asset, which was SLK. Now at $1.17 billion, we are acquiring a $220 million asset. So, it’s slightly bigger, but not disproportionately bigger than what we’ve done in the past.”
He said Cigniti will open many new opportunities for Coforge, particularly in North America, and prove to be yet another successful acquisition for the company.
The acquisition will help Coforge get three new verticals – retail, hi-tech and healthcare. It will also add 28 new Fortune-500 clients to which Coforge can cross-sell its services and allow Coforge to participate in specialised assurance services, Singh said.
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At a time when bigger IT peers are struggling to realise synergies of their mergers and acquisitions, Singh is optimistic that the company’s biggest acquisition will be as successful as the past acquisitions.“We acquired a $13-million entity, Pega, seven years back. It’s a $100-million business today. We acquired a $22-million entity in MuleSoft (the Salesforce Integration Cloud) 4.5 years back. It’s a $70-million business today. We acquired a BPO business (SLK) three years back at $73 million focused on mortgage, which is where the revenues have gone down because of interest rate hikes. And yet that business is now a $110-million business,” he said.
Singh said Coforge is not a revenue-stressed or a growth-constrained company that is trying to acquire a firm and show some artificial growth. “We are not in that business. I will report Cigniti and Coforge’s performance separately for the next four quarters so that it will be very clear that the organic growth business of Coforge is doing very well,” he said.
