Mastek gallops on signing agreement to acquire Agile Technologies

Mastek galloped 7.52% to Rs 281.65 at 14:55 IST on BSE after company's wholly owned subsidiary in US, Majesco, Inc., said it has signed a definitive agreement to acquire the business of Agile Technologies.

The announcement was made during trading hours today, 12 December 2014.

Meanwhile, the BSE Sensex was down 224.26 points, or 0.81%, to 27,375.55.

On BSE, so far 1.6 lakh shares were traded in the counter, compared with an average volume of 1.35 lakh shares in the past one quarter.

The stock hit a high of Rs 283.30 and a low of Rs 259.30 so far during the day. The stock hit a record high of Rs 337 on 18 September 2014. The stock hit a 52-week low of Rs 134 on 1 December 2013.

The stock had underperformed the market over the past one month till 11 December 2014, falling 5.3% compared with 1.1% decline in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 7.47% as against Sensex's 2.25% rise.

The small-cap IT firm has an equity capital of Rs 11.19 crore. Face value per share is Rs 5.

Agile Technologies is an insurance industry focused IT consulting firm with revenues of over $9 million. Majesco's strengths in insurance technology, with a portfolio of market leading software products and services combined with Agile's industry thought-leadership, consulting and client service capabilities will enable Majesco to accelerate its global customer support and growth plans.

The acquisition of Agile Technologies' business is a significant step in the execution of Majesco's aggressive growth strategy. The company has made and will continue to make significant investments in expanding and strengthening its global business while continuing to build its portfolio of products and services through ongoing R&D, talent development and acquisition of firms providing synergistic offerings like Agile Technologies. The business acquisition is expected to close in January 2015.

Ketan Mehta, CEO and founder of Majesco said, "Majesco has been on an aggressive growth path adding new capabilities, growing our customer base and expanding into new geographies while keeping a laser sharp focus on meeting the technology needs of just one industry-insurance." Mehta continued, "Agile's business is a natural synergistic fit for Majesco and this acquisition is an ideal way to strengthen our capabilities. Agile has an excellent reputation in the industry with a high quality talent pool of over 50 insurance technology professionals, domain depth and a satisfied customer base. Our customers and the insurance industry at large will benefit from our combined strength in creating and executing carriers' data strategy, business process optimization and business intelligence projects. We look forward to being a partner of choice to over 20 of Agile's customers who join our growing customer base."

This acquisition strengthens Majesco's offerings with Agile's strong consulting practice, business process optimization capabilities and additional technology services including data architecture strategy & services.

Bill Freitag, founder of Agile Technologies as well as managing partner and CEO, added, "Since our founding in 1997, Agile Technologies has had an unwavering commitment to helping our client companies bridge the chasm between technology promises and real-world business value. We have sought to meet our customers' broader technology needs across the insurance value chain with a range of software and solutions with global delivery capabilities. We are excited to bring our experience and expertise to Majesco, a company that shares our commitment and believes in applying a partnership-based approach to every client engagement. We have had a long-term relationship with Majesco partnering with them on many of our customer engagements. We see this development as a natural extension of our relationship a great marriage of software, consulting and services, and a shared vision of the value well-implemented technology solutions can deliver to customers."

Mastek's consolidated net profit jumped 104.7% to Rs 1.74 crore on 10.61% rise in total income to Rs 251.74 crore in Q2 September 2014 over Q2 September 2013.

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