Aurionpro Solutions surges as arm sells IAM business

The stock surged 15% to Rs 284, also its 52-week high on BSE in intra-day trade.

Aurionpro Solutions surged 15% to Rs 284, also its 52-week high on BSE in intra-day trade, after Cyberinc, the company's subsidiary, entered into a definitive agreement with KPMG LLP, USA, for sale of its Identity and Access Management (IAM) business. The transaction is expected to close on January 31, 2018.

“Cyberinc’s IAM business is the largest independent IAM provider in the world. The proposed sale will require participation of Cyberinc US, UK, Australia and Aurionpro India,” Aurionpro Solutions said in a regulatory.

Cyberinc’s IAM business contributed to about Rs 172 crore in global revenues during the fiscal year 2016-17 and India revenues stood at Rs 22 crore or about 10% of Indian entity for the same period. The aggregate purchase price will be around Rs 217.60 crore, all cash and excludes the product – Cyberinc Entitlement Server, it added.

This divestiture is a major milestone and a testament to the world-class business Aurionpro has built. It is further in line with Aurionpro’s strategy of simplifying and sharpening focus on its core growth areas – digital innovations, banking and cybersecurity, the company said.

Cyberinc is a subsidiary of Aurionpro Solutions - a global technology product and solution provider, headquartered in Mumbai, India and San Ramon, California.

At 02:45 PM; the stock was up 7% at Rs 265 on BSE, as compared to 0.36% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 382,958 shares changed hands on the BSE and NSE so far.