- 21 Nov 2024
- ICICI Securities
COFORGE COMPLETED ITS OPEN OFFER FOR CIGNITI TECHNOLOGIES LIMITED
News: Coforge has completed its open offer for Cigniti Technologies Limited, acquiring an additional 4.69% of the company's shares at a price of ₹1,415 per share. This brings Coforge's total shareholding in Cigniti to 32.68%. The acquisition is part of Coforge's strategy to expand its presence in the information technology and services industry.
Views: Coforge announced acquisition deal of “Cigniti Technologies” (54% stake at a per share price of ₹1,415) in Q4FY24, citing that the synergy benefits of this deal would propel the company to become a US$ 2bn firm by FY27 and that the acquisition shall lead to a 150-200 bps improvement in operating margins of the company by the same period. We shall have to see how much of it does materialise in the future as Cigniti is largely into digital assurance and testing which maybe the biggest impacted segment (cannibalise its own revenue) amid GenAI adoption, going ahead.
Impact: Neutral