Hinduja Global gains after acquisitions

Hinduja Global Solutions (HGC) rose 1.40% to Rs 1,369 after the company announced two mergers and acquisition (M&A) developments to support its transformation journey as HGS 2.0.

HGS has entered into a definitive agreement to acquire a 100% stake in TekLink International, Inc., for a consideration of $58.8 million, subject to earnouts and other customary and agreed adjustments. The transaction with the analytics service provider is expected to close in the next two months.

TekLink International Inc., is a full-service financial planning and analytics service provider, including design, implementation, and application management services.

The acquisition will strengthen HGS' digital solutions business by adding enhanced expertise in building data platforms, analytics, and financial planning. It will also add complementary digital workforce bench strength, with 275 seasoned technology and implementation professionals joining HGS as part of the transaction.

Further, HGS also signed a non-binding Letter of Intent (LoI) to acquire uKnowva, a digital Human Resources Management System (HRMS) product business, from Convergence IT Services, subject to necessary diligence and approvals. uKnowva is a Cloud-based SaaS platform that is easy to use, cost effective and leverages intelligent software to deliver human capital management, automation, and collaboration for midsize and growing companies.

uKnowva business has 75+ employees in India supporting over 300,000 users across 80+ clients. The acquisition of uKnowva, when approved and completed, will create technology synergies with HGS' existing HRO/ Payroll and F&A business, that supports several hundred clients with mainly HR operations related activities in India and the Middle East today.

"HGS has been investing significantly in developing technology-led capabilities to reimagine the CX journey for our clients in an increasingly digital first world. TekLink and uKnowva with their transformative solutions in the analytics & financial planning and HR technology segments, respectively, are a good strategic fit for us. The synergies will help us strengthen our existing digital portfolio substantially, expand in new rapidly growing segments, co-create solutions, and cross-sell to clients," said Partha DeSarkar, Group CEO, HGS. "We continue to build an end-to-end ecosystem of innovative solutions that support every touchpoint in the consumer journey."

Meanwhile, HGX said that the board is expected to meet in the week of 19 December 2022 to finalize the terms of the proposed buyback.

HGS is a global leader in optimizing the customer experience lifecycle, digital transformation, and business process management, HGS is helping its clients become more competitive every day. HGS combines automation, analytics, and artificial intelligence with deep domain expertise focusing on digital customer experiences, back-office processing, contact centers, and HRO solutions.

HGS' consolidated net profit surged 121.7% to Rs 237.36 crore on 9.5% rise in net sales to Rs 1,167.54 crore in Q2 FY23 over Q2 FY22.

Powered by Capital Market - Live News