Datamatics arm inks pact to acquire TNQTech

Datamatics Global Services (DGSL) said that its material subsidiary, Lumina Datamatics has signed a definitive agreement to acquire a controlling stake in TNQTech, a Chennai-based publishing technology and services company.

TNQTech empowers scholarly publishers with AI-enabled technology for efficient publishing processes and offers end-to-end services for scholarly content. The company is trusted by commercial and open access publishers and learned societies across Europe and North America. Its innovative approach to publishing and content technology, combined with a strong focus on technological advancements, has led to several patents for its products. Its turnover was Rs 141.67 crore in Q2 FY25.

The company will acquire 80% stake for total consideration of Rs 336 crore before 31 December 2024 and remaining 20% stake will acquire on or before 31 July 2026, subject to any extension as per the terms of definitive agreements. Post-acquisition, TNQTech will become step-down subsidiary of Datamatics Global Services.

Sameer Kanodia, managing director & CEO, Lumina Datamatics, said, We are excited to welcome TNQTech to the Lumina Datamatics family. This acquisition will collectively strengthen us to over 6,500 employees globally and establish us amongst the dominant service providers in the world of digital content. It aligns perfectly with our growth strategy of expanding our capabilities in being part of the future of publishing content and technology as we continue to stay ahead in the ever-changing publishing landscape.

In combination with our existing capabilities at the forefront of content workflows by managing the entire publishing process from content creation to product delivery this acquisition will enable us to strengthen our suite of AI-enabled technology and products which are used by some of the largest commercial publishers, prestigious learned societies, associations, and university presses, and through them, by millions of authors.

Mariam Ram, managing director, TNQTech, said, "We are excited to be part of Lumina Datamatics. We look forward to taking advantage of the synergies that will result from the collaboration between TNQTech and Lumina Datamatics. We will benefit from Lumina Datamatics rich experience of working with global enterprise customers, and their broad range of publishing and technology solutions.

DGSL provides solutions for data driven businesses to enhance their productivity and customer experience. The company's services can be bifurcated into three segmentsdigital operations, digital experience and digital technology. The company has also developed products in robotics process automation, advanced analytics, business intelligence, and automated fare collection.

The company's consolidated net profit fell 13.99% to Rs 42.36 crore on a 7.95% rise in revenue to Rs 406.75 crore in Q2 FY25 over Q2 FY24.

The counter advanced 1.40% to end at Rs 636.20 on Monday, 9 December 2024.

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