Germany-based SQS Software, a software testing firm, plans to acquire a majority stake in Thinksoft Global for Rs. 148 crore in a transaction that marks a string of recent deals in India’s $108 billion software services industry.
SQS has signed a definitive agreement to acquire a majority of the outstanding shares of Thinksoft for Rs. 260 per share—which represents 26 per cent of the outstanding share capital of Thinksoft. The price, according to a joint release, is at a premium of 68 per cent to Thinksoft’s closing share pricing on November 6.
According to Asvini Kumar, Chairman and Managing Director of Thinksoft, both companies are pure-play independent software testing outfits, and are a “natural fit.”
“Thinksoft will function as the BFSI global centre of excellence, a division within the SQS group. Our customers have every reason to be excited and our employees can look forward to more global career opportunities,” Mr. Kumar said.
Thinksoft, which primarily specialises in the BFSI sector, currently has 800 employees.
After the announcement was made, Thinksoft’s stock breached the upper circuit limit of Rs. 194.15 on the Bombay Stock Exchange.
SQS will launch a tender offer to acquire from the public shareholders of Thinksoft a further 30 per cent of the currently outstanding share capital of the company in compliance with the Securities and Exchange Board of India.
In the event that SQS is unable to acquire a majority of the shares of Thinksoft post completion of the open offer, the promoters have agreed to sell up to 28,03,871 additional equity share to ensure that SQS acquires a majority of the currently outstanding shares, the release said.