Shares of R Systems International, a Blackstone-owned small-cap firm, jumped 17% during intraday trading on Friday, August 22, after the company announced its acquisition of Novigo Solutions and board approval for a ₹275 crore fundraising initiative.
The stock hit an intraday high of ₹496.95, gaining 17.24%, and was trading at ₹480.10, up 13.27%, as of 10:40 AM.
On Thursday post-market hours, R Systems revealed it had signed a definitive agreement to acquire Novigo Solutions, a specialist in low-code/no-code development and intelligent automation. The acquisition deal includes an upfront cash payment of ₹400 crore, funded through internal accruals and debt, along with a stock-based component linked to future EBITDA targets. The acquisition is expected to be earnings per share (EPS) accretive from the first year.
Novigo has demonstrated a robust 44% revenue CAGR over the last three years, with 25% EBITDA margins and strong free cash flow. The acquisition strengthens R Systems’ digital engineering offerings in FinTech, Hi-Tech, and Agentic AI.
Additionally, the board approved raising ₹275 crore via listed non-convertible debentures, to be issued on a private placement basis and listed on the BSE.
