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Shares of R Systems International hit a six-month high, surging 16.5% in early trade on Friday after the company announced the acquisition of Novigo Solutions for an upfront cash consideration of ₹400 crore.

At the time of writing, R Systems stock was trading 15.8% higher at ₹490.3.

Why Acquire Novigo?

By bringing Novigo on board, R Systems will merge its OptimaAI Suite with Novigo’s UiPath automation expertise and Microsoft Copilot capabilities.

This will help the company build and manage large-scale AI agent networks on one platform, supporting enterprises that are adopting autonomous and compliance-ready AI workflows, R Systems said in a press release on August 21.

The acquisition also helps R Systems expand its geographic footprint, particularly in the fast-growing Middle East market, while strengthening delivery capabilities in Bangalore and Tier-2 cities such as Mangalore. Novigo’s management team will remain with the joint company. The acquisition will enhance R Systems’ position in the emerging Agentic AI field.

Financially Accretive Deal 

According to the official statement, the acquisition will create a digital engineering firm with revenues of about ₹20,600 million and EBITDA of ₹3,800 million. Novigo has delivered a 44% revenue CAGR over the past three years, backed by a 25% EBITDA margin and solid free cash flow.

Under the agreement, R Systems will pay ₹400 crore, with additional stock-based payouts linked to future EBITDA performance. The deal is expected to be earnings accretive for R Systems from the first year itself.

Barclays acted as Novigo’s exclusive financial advisor, and the deal is expected to close in the coming weeks, subject to customary approvals.

Retail Turns Bullish

Retail sentiment on Stocktwits turned ‘bullish’ on Friday from ‘neutral’ a day earlier.

The stock movement today added a significant chunk to the company’s gains over the last six months, which stands at over 36%.

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