NIIT Tech buys majority stake in Incessant

May 06, 2015 02:39 am | Updated 02:40 am IST - NEW DELHI:

NIIT Technologies on Tuesday announced acquiring 51 per cent stake in Hyderabad-based Incessant Technologies for $17 million (about Rs.107.8 crore).

“Incessant provides us with the capability to be a significant player in the Digital Integration space with digitisation and automation of business processes for seamless customer experience,” NIIT Technologies COO Sudhir Chaturvedi said.

Mr. Thakur added that going forward the company would be focusing on digital space. Digital business currently contributes about nine per cent of NIIT Technologies’ revenues.

“This acquisition is a strategic move for us to grow in the digital space. Incessant is valued at about $17 million and we will would be investing the same amount for 51 per cent stake,” he said, adding that NIIT Technologies will gradually go on to acquire the remaining stake in the company over a period of time.

Incessant Technologies presently has about 300 employees and 20 significant clients.

Posts loss in Q4

The company posted a net loss of Rs.17.50 crore for the quarter ended March 31, 2015, against a profit of Rs.61.90 crore in the year-ago period, due to exceptional expenses of Rs.80 crore on account of dispute settlement. “A dispute had arisen between one of the company’s subsidiaries and its client in the Asia Pacific region. The dispute was resolved by concluding a settlement agreement which released the company of its obligations towards execution of the programme,” NIIT Technologies Chief Executive Officer Arvind Thakur said. He added that the financial impact of this one-off event during the quarter was Rs.80 crore. Consolidated revenues rose 3.9 per cent to Rs.611.20 crore in the January-March 2015 period. The board recommended Rs.9.50 per equity share as dividend for 2014-15.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.