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AGC Networks completes acquisition of Black Box Corp; stock rises 10%

The stock locked in upper circuit of 10% at Rs 115, rallied 92% in past one month, as compared to 3% rise in the S&P BSE Sensex.

SI Reporter  |  Mumbai 

Experts say India's attractiveness as a hub for back office services could wane if such tax liability is imposed
Experts say India’s attractiveness as a hub for back office services could wane if such tax liability is imposed

Shares of locked in upper circuit of 10 per cent at Rs 115 on after the company announced that its wholly-owned subsidiary has completed the acquisition of Black Box Corporation, a leading digital solutions provider in the US.

“The combination with Black Box will substantially strengthen AGC’s presence and offerings in North America, Latin America, and Asia. The acquisition will also help add US$600 million to AGC’s revenue, taking the company’s combined revenue to over US$750 million, and global headcount to more than 4,000 people serving clients worldwide,” said in a press release.

A concrete benefit of this acquisition is the diversity of offerings, and clients between the two companies, with little overlap, added.

The stock of consulting and software firm has a strong run-up, zooming more than 92 per cent in past one month from level of Rs 60.20. In comparison, the S&P was up 3 per cent during the same period.

is a Global Solution Integrator representing the world’s best brands in unified communications, data center & edge IT, cybersecurity (CYBER-i) and digital transformation & applications to evolve the customer’s digital landscape.

The company had reported a robust seven-fold jump in its consolidated net profit at Rs 16.76 crore during the first half (April-September) of the financial year 2018-19 (H1FY19). posted a profit of Rs 2.39 crore during the same period last fiscal. Revenue grew 16.7 per cent to Rs 385 crore on YoY basis.

Till 01:45 pm; a combined 73,037 equity shares changed hands on the counter. There were pending buy orders for 21,700 shares on the and NSE, the exchange data shows.

First Published: Thu, January 10 2019. 13:48 IST