IT Giant's Bold Move: USD 17.85 Million Acquisition to Boost AI & Cloud Capabilities
With this buyout, the company aims to accelerate its position in cloud and automation.
Coforge Inc., a wholly owned subsidiary of Coforge Limited, has successfully completed the acquisition of Xceltrait Inc. The deal, initially announced on January 23, 2025, involved the purchase of all outstanding shares of Xceltrait Inc. for a total consideration of approximately $17.85 million. The acquisition was made through a stock purchase agreement and was executed in cash.
Business Impact
Xceltrait Inc. specializes in the implementation of ServiceNow’s Financial Services Operations (FSO) and Customer Service Management (CSM) modules. With this acquisition, Coforge aims to strengthen its expertise in the property and casualty insurance sector. This move aligns with the company's strategy to expand its capabilities and enhance service offerings across its client base.
Financial Performance in Q3 FY2025
Coforge reported strong financial results for the third quarter of FY2025. The company achieved a revenue of $397.1 million, reflecting a 40.3 per cent year-on-year growth in constant currency terms. The order book stood at $1.37 billion, a 40.1 per cent increase compared to the previous year.
Growth Across Verticals and Geographies
The company witnessed significant growth across various sectors. The banking and financial services segment grew by 20.4 per cent, while the insurance sector expanded by 20.3 per cent. The travel segment saw a robust 43.4 per cent growth. Geographically, the Americas grew by 9.2 per cent quarter-on-quarter, while EMEA recorded an 8.9 per cent growth.
Profitability and Margins
Coforge’s adjusted EBITDA stood at $70.5 million, reflecting a sequential growth of 15.4 per cent. The EBITDA margin improved to 17.8 per cent, up by 122 basis points. The integration of Cigniti has also positively impacted margins, increasing from 11 per cent to 17.3 per cent over three quarters.
Order Intake and Workforce Expansion
The company secured new orders worth $501 million during the quarter. The total workforce increased to 33,094 employees, with a net addition of 611 employees. The attrition rate remained stable at 11.9 per cent.
Future Outlook
With strong deal pipelines and an expanding order book, Coforge remains confident in achieving sustained growth. The company is also focusing on AI-driven solutions, with 95 per cent of its workforce trained in AI tools. The proposed amalgamation of Cigniti with Coforge is expected to be effective from April 1, 2025, further strengthening business synergies.
Conclusion
Coforge continues to build on its growth momentum with strategic acquisitions, strong financial performance, and technological advancements. The company is well-positioned to achieve its next milestone of $2 billion in revenue, backed by operational excellence and a robust client portfolio.
Disclaimer: The article is for informational purposes only and not investment advice.