R Systems acquires Novigo Solutions for ₹400 Crore

22 Aug 2025 , 11:46 AM

R Systems International Ltd. zoomed as much as 17% in Friday’s intraday session after the company announced a definitive agreement for acquisition of Novigo Solutions. The company has specialization in low-code / no-code (LCNC) development and intelligent-automation services.

At around 11.14 AM, R Systems was trading 12.04% higher at ₹474.50, against the previous close of ₹423.50 on NSE. The counter touched an intraday high and low of ₹496.60, and ₹448.70, respectively.

The company announced that the upfront consideration for the transaction is ₹400 Crore. In addition to this, a stock consideration linked to future Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) achievement. The acquisition will be acquisition accretive for R Systems from the first year, the company announced.

The company stated that the acquisition will create a global digital product engineering services powerhouse with an EBITDA of ₹380 Crore, and revenue of ₹2,060 Crore. 

Novigo’s revenue grew at a compound annual growth rate of 44% for over 3 years with 25% EBITDA margin and healthy cash flow, stated the company in its filing.

With this acquisition, R Systems will expand its offerings in the Middle East Region and gain delivery presence in Bengaluru and tier-2 cities such as Mangalore.

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