eClerx Services gains 4%, hits 52-week high as Company to acquire Personiv

Shares of eClerx Services hit a 52-week high of Rs 840, up 4 per cent on the BSE in early morning trade on Monday after the company said it has entered into an agreement to acquire 100 per cent stake in Eclipse Global Holdings LLC (dba Personiv) for an enterprise value of $34 million (Rs 248 crore).

“The company has entered in to a share/membership interest purchase agreement to acquire 100 per cent stake in Eclipse Global Holdings LLC (dba Personiv) (“Personiv”), a Delaware company headquartered in Austin, Texas, USA, through its wholly-owned subsidiary viz. eClerx LLC, USA,” eClerx Services said in a release.

The acquisition is on debt-free, cash-free basis. The acquisition is expected to be closed by December 29, 2020, and will be paid in cash. The acquired company revenues will be consolidated fully in eClerx Q42021. The transaction anticipated to be EPS accretive, the company said.

The acquired company's revenues are expected to be $28 million in CY20 and normalised EBITDA margin of 20 per cent. The acquisition will add around 14 per cent to the company's topline and is expected to be EPS accretive. However, the acquired company has stagnant revenues over the past two years and margins have decelerated from 25 per cent in CY18 to 20 per cent in CY20, ICICI Securities said in a note.

At 09:39 am, the stock was trading 2 per cent higher at Rs 828 on the BSE, as compared to a 0.43 per cent rise in the S&P BSE Sensex. A combined around 72,000 equity shares changed hands on the counter on the NSE and BSE.