Coforge’s $220-m Cigniti acquisition biggest, but not disproportionately bigger: CEO Sudhir Singh
Coforge chief executive Sudhi Singh on Friday said it will shell out $220 million, or about Rs 1,826 crore, to acquire 54% stake in Hyderabad-based Cigniti Technologies even as the Noida-based IT firm launched an open offer to acquire an additional 26% stake in Cigniti.
Coforge had on Thursday said it is acquiring 54% share in Cigniti from promoters and other shareholders at Rs 1,415 per share.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Product ManagementVisitMITMIT Technology Leadership and InnovationVisitIndian School of BusinessISB Professional Certificate in Product ManagementVisitThe 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.
At a time when bigger IT
