Saksoft share price jumps 17% as company acquires Augmento Labs

Saksoft share price jumps 17% as company acquires Augmento Labs/Pixabay

MINT | June 13, 2024 | 05:00 PM IST | Breaking News | Follow on Google News

Saksoft share price jumps 17% as company acquires Augmento Labs

Saksoft share price jumps 17% as company acquires Augmento Labs

Shares of IT service management company Saksoft skyrocketed 17 percent in intraday deals after the company announced the acquisition of Augmento Labs Private Limited, a digital engineering company.

In an exchange filing, Saksoft said, “We wish to inform you that the company has executed a Share Purchase Agreement (Agreement) to acquire 100 percent equity interest in Augmento Labs Private Limited (Augmento Labs) subject to the terms and conditions set out in the Agreement.”

Following the acquisition, Augmento Labs will become a wholly-owned subsidiary of Saksoft, with the transaction expected to be completed within the next four weeks, the filing added. Furthermore, the acquisition involves a total cash consideration of up to ₹100 crore, comprising an upfront payment of ₹35 crore and the remainder as earnout consideration tied to performance over two financial years.

The stock rose as much as 17 percent to its intra-day high of ₹305. It is now over 23 percent away from its peak of ₹399.40, hit on October 20, 2023. Meanwhile, the stock has jumped over 45 percent from its 52-week low of ₹210, hit on March 14, 2023.

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The scrip is down 14 percent in the last 1 year and 7.5 percent in 2024 YTD. While the stock has advanced over 21 percent in June so far, it has been in the red in 4 of the 6 months of 2024 so far. Apart from June, it has only given a positive return in April, when it rose 9.2 percent. Meanwhile, it shed 13 percent in May, 5.3 percent in March, 12.9 percent in February, and 2.9 percent in January.

Saksoft further stated that it anticipates the transaction will be finalised by the end of the current quarter, pending customary closing conditions.

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“We believe that acquiring Augmento Labs will significantly strengthen Saksoft’s position in the dynamic and rapidly growing digital engineering market. Augmento Labs robust engineering expertise and domain knowledge will complement Saksoft’s broad scale and digital prowess, providing Augmento Labs esteemed client base access to our cutting-edge AI, Cloud, and Data technologies,” said Aditya Krishna, chairman & managing director, Saksoft.

Founded in 2019, Augmento Labs has established itself as a niche player in the Digital Engineering space offering innovative solutions across various industries including Hi-Tech, automotive, healthcare, and industrial domains.

The acquisition will enhance Saksoft Limited’s expertise in digital engineering and expand its reach to enterprise clients, according to a company statement. Co-founders Anurag Aggarwal and Pravesh Kumar of Augmento Labs also expressed optimism about leveraging Saksoft’s domain knowledge, technology capabilities, and talented workforce to deliver enhanced client value in the future.

MINT