eClerx Services gains after acquiring Italian digital services firm

eClerx Services rose 2.85% to Rs 1,635 at 13:26 IST on BSE after the company announced that its board agreed to buy CLX Europe SpA, an Italian media content management company, for approximately Rs 167 crore.

The announcement was made after market hours yesterday, 31 March 2015.

Meanwhile, the BSE Sensex was up 118.07 points, or 0.42%, to 28,075.56.

On BSE, so far 13,000 shares were traded in the counter, compared with an average volume of 29,339 shares in the past one quarter.

The stock hit a high of Rs 1,700 and a low of Rs 1,610 so far during the day. The stock hit a record high of Rs 1,719.35 on 30 March 2015. The stock hit a 52-week low of Rs 1,057.50 on 27 May 2014.

The stock had outperformed the market over the past one month till 31 March 2015, rising 20.07% compared with 4.78% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 22.08% as against Sensex's 1.67% rise.

The mid-cap company has an equity capital of Rs 30.35 crore. Face value per share is Rs 10.

eClerx Services, through its newly incorporated wholly-owned subsidiary eClerx Investments (UK), has agreed to acquire Italy-based CLX Europe S.P.A., a company that creates, manages and delivers creative assets globally to the multi-channel market for luxury brands and major retailers.

Post-acquisition, CLX will operate as a subsidiary of eClerx and CLX's current management team will continue to manage day-to-day operations with support from eClerx. The transaction, which will be routed/effected through company's wholly owned overseas subsidiary(ies), is expected to close in the near future and is likely to be EPS accretive for eClerx, the company said in a statement.

The total consideration for the acquisition will be all cash and eClerx would be paying an amount not exceeding 25 million euros towards the acquisition thereof upon closing. The transaction will be funded from eClerx's internal accruals, the company added.

CLX Europe creates, manages and delivers creative assets globally to the multi-channel market for luxury brands and major retailers. The combined companies' capabilities are highly complementary, and now form a continuous value chain of creative asset development, digital multi-channel production, data management, and analytics and insights.

On a consolidated basis, eClerx Services' net profit fell 2.39% to Rs 60.80 crore on 4.22% increase in net sales to Rs 241.61 crore in Q3 December 2014 over Q2 September 2014.

eClerx Services helps companies optimize core business operations in order to deepen client relationships and grow market share. It solves complex data challenges across industries to enhance the end user experience with the added benefit of improving efficiencies and reducing costs.

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