Datamatics acquires additional 10 per cent stake in subsidiary

Datamatics Global Services Limited has acquired an additional 10 per cent equity stake in its subsidiary named Datamatics Digital Limited. The subsidiary was earlier known by the name of Techjini Solutions Private Limited.

This transaction falls within a related party transaction as the target entity is the subsidiary of the acquiring company. The target company’s business is related to IT software. Before the acquisition, Datamatics’ stake in this subsidiary was 71.1 per cent. With the additional acquisition of 10 per cent stake, the total stake of the company would stand at 81.1 per cent.

Datamatics would be paying consideration of Rs 5,50,00,000 in cash for acquiring 5,50,000 shares. The transaction would be completed on or before March 31, 2019.

This acquisition will further strengthen Datamatics’ enterprise mobility offerings through the target company’s range of smart technology solutions. It will enable both the companies to offer a wider and comprehensive suite of solutions to their existing customers and expand its business across India and the US.

Datamatics Digital Limited was incorporated on December 27, 2005 and in the last 3 years, the consolidated revenue of the company has grown from Rs. 27.73 crore in FY16 to Rs. 39.26 crore in FY18.

On Wednesday, the stock of Datamatics Global Services opened at Rs. 105.60 per share and was up by 3.5 per cent in morning trade at Rs. 107.70 per share.