M&A

M&A

Coforge hikes stake in fellow IT Services firm Cigniti to 100%

BSE Announcement   Press Release  

Noida-based Coforge (formerly NIIT Technologies) has completely acquired fellow publicly listed, Hyderabad-based Cigniti Technologies , following shareholder approval and final clearance from the National Company Law Tribunal (NCLT).Cigniti specializes in digital assurance, software testing and quality engineering. Coforge has acquired Cigniti to gain access to its tenured relationships, expand its healthcare business, and grow its presence in the Midwest and Western regions of the USA.Following the original acquisition (of a 54% stake in May 2024), Cigniti's top two accounts' annual revenues scaled from a cumulative USD 25 million to USD 75 million. The business's EBITDA margins expanded from approximately 11% pre-acquisition to about 19% over five quarters, and reported PAT increased to 14%-15%.

For FY25, Cigniti had reported about INR 1,030 Cr in Operating Income and about INR 122 Cr in PAT.