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 16.25% 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.
Shares of DATAMATICS GLOBAL SERVICES LTD. was last trading in BSE at Rs.78.4 as compared to the previous close of Rs. 73.6. The total number of shares traded during the day was 84621 in over 1028 trades.
The stock hit an intraday high of Rs. 80.95 and intraday low of 72.45. The net turnover during the day was Rs. 6770983.