Majesco's subsidiary to fully acquire Ireland's Exaxe Holdings

IT solutions firm Majesco Wednesday said its US subsidiary has entered into a share purchase agreement to fully acquire Ireland's Exaxe Holdings for up to EUR 11.61 million (approx Rs 92.90 crore).

Majesco USA said it has consummated the purchase of 90 per cent of the securities.

"Majesco USA has agreed to purchase, and the sellers have agreed to sell to Majesco USA, the remaining 10 per cent of the securities on August 1, 2019," the company said in a regulatory filing.

In consideration for purchase of the securities, Majesco USA paid the sellers EUR 6.39 million. In addition, Majesco USA agreed to make an additional payment to the sellers of EUR 0.72 million for the remainder of the securities on August 1, 2019.

Majesco said a deferred consideration payment of up to EUR 4.50 million, based on achievement of adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) will be made for calendar years 2019, 2020 and 2021.

"Accordingly, Exaxe has become a direct subsidiary of Majesco USA, and step-down subsidiary of the company," it added.

Shares of Majesco were trading 1.68 per cent higher at Rs 479.30 apiece on BSE.