8K Miles Software jumps on acquisition of US firm

8K Miles Software services jumped 6.85% to Rs 683.35 at 12:02 IST on BSE after the company announced entering into an agreement to acquire a leading US healthcare information technology company.

The announcement was made during market hours today, 20 December 2016.

Meanwhile, the S&P BSE Sensex was down 85.45 points or 0.32% at 26,289.25.

On the BSE, 26,000 shares were traded on the counter so far as against the average daily volumes of 10,047 shares in the past one quarter. The stock had hit a high of Rs 701.90 and a low of Rs 651 so far during the day.

The stock had a hit record high of Rs 956.25 on 14 January 2016 and a 52-week low of Rs 478.13 on 12 Febraury 2016. The stock had underperformed the market over the past one month till 19 December 2016, declining 1.43% compared with the Sensex's 0.86% rise. The scrip had also underperformed the market over the past one quarter declining 9.92% as against the Sensex's 7.89% fall.

The small-cap company has equity capital of Rs 15.26 crore. Face value per share is Rs 5.

8K Miles Software Services announced that its US-subsidiary 8K Miles Software Services, Inc has entered into a definitive Agreement to acquire Cornerstone Advisors Group, LLC (Cornerstone), a leading US healthcare information technology company, for $10,250,000 inclusive of earn-out payments as a combination of cash and stock from the 8K Miles US-subsidiary.

Once completed, the acquisition of Cornerstone will further strengthen 8K Miles position as a partner, consultant and technology solution provider to healthcare clients in the US.

Suresh Venkatachari, Chairman & CEO of 8K Miles said that with the acquisition of Cornerstone, the company will add more than 50 top healthcare experts, consultants and practice directors in the US. Also, this acquisition strengthens 8k Miles' position as a thought leader in healthcare information technology services.

This acquisition is subject to customary closing conditions and is expected to close in Q4 March 2017.

8K Miles Software Services' consolidated net profit rose 22.24% to Rs 23.63 crore on 17.62% growth in net sales to Rs 122.18 crore in Q2 September 2016 over Q1 June 2016.

8K Miles Software Services is a leading global IT business transformation, secure cloud solutions and managed services company.

Powered by Capital Market - Live News