- 19 Jul 2022
- ICICIdirect Research
Mastek acquires Metasoftech Solutions for US$76.6 mnMASTEK - 1541 Change: 23.00 (1.52 %)
News: Mastek informed the stock exchanges that it has signed a definitive deal to acquire 100% stake in Metasoftech solutions for a consideration of US$76.6 mn (2.6x price to sales). Metasoftech is a software services & IT consulting firm based in US. It has 320+ workforce and expertise in catering verticals like healthcare, manufacturing, etc.
Views: The company earlier indicated its aspiration to reach US$1 bn revenue in the second half of the decade. The aspirational number includes inorganic opportunities with annual sales in the range of US$20-40 mn. This acquisition is in line with its strategy to expand in the US market where it is looking to strengthen its vertical mix to 33% by FY25 vs. 17% now. The acquisition is expected to add in 10-11% incremental sales for FY23E for the company.