November 24, 2020, Mumbai: Datamatics Global Services Ltd. (DGSL), a global Digital Solutions, Technology and BPM company, announced that Datamatics Global Technologies Limited, Mauritius (DGTL), its wholly-owned subsidiary, has agreed to divest its stake in Cignex Datamatics Inc. (Cignex) through a stock redemption arrangement.
The proposed divestment will be effected through a stock redemption agreement, under which Cignex will buy-back the entire 62.51% stake held by DGTL in Cignex for an aggregate price of USD 16.57 Mn of which USD 7.97 Mn will be paid upfront to DGTL. The balance amount will be paid-out within the next 3 (three) years. With this, the earlier deal with Relevance Lab stands terminated.
Cignex Datamatics, is a US-headquartered IT Services firm offering Open Source and Automation services. It contributed 16.26% of the total turnover of DGSL for the year ended March 31, 2020.
Speaking on occasion, Rahul Kanodia, CEO and Vice-Chairman, Datamatics, said: “We have worked on the structure and commercial terms to arrive at the proposed arrangement. This is an all cash deal and we are confident that it is beneficial for our Company and its shareholders.”
He further added, “It will free up the management bandwidth, bring a sharper focus, and provide funds to invest in our digital solution strategy which is central to the business.”
The deal is subject to approval by Datamatics shareholders.
About Datamatics Global Services Limited
Datamatics (BSE: 532528 | NSE: DATAMATICS) provides intelligent solutions for data-driven businesses to increase productivity and enhance the customer experience. With a completely digital approach, Datamatics portfolio spans across Information Technology Services, Business Process Management, Engineering Services, and Big Data & Analytics, all powered by Artificial Intelligence. It has established products in Robotic Process Automation, Intelligent Document Processing, Business Intelligence, and Automated Fare Collection. Datamatics services global customers across Banking, Financial Services, Insurance, Healthcare, Manufacturing, International Organizations, and Media & Publishing. The Company has a presence across 4 continents with major delivery centers in the USA, India, and the Philippines. To know more about Datamatics, visit www.datamatics.com
Safe Harbour
Some of the statements in this update that are not historical facts are forward-looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry.
For media queries, please contact:
Sudeshna Mukherjee
Marketing & Corporate Communications
sudeshna.mukherjee@datamatics.com
