Mastek rose 1.6% to Rs 177.35 at 10:15 IST on BSE after the company's US unit, Digility Inc., announced the acquisition of US-based leading digital commerce solution provider.
The announcement was made after market hours yesterday, 5 January 2017.Meanwhile, the BSE Sensex was up 93.94 points, or 0.35%, to 26,972.07.
On the BSE, 43,069 shares were traded in the counter so far, compared with average daily volume of 95,094 shares in the past one quarter. The stock had hit a high of Rs 181 and a low of Rs 176.30 so far during the day. The stock had hit a 52-week high of Rs 201.40 on January 2016. The stock had hit a 52-week low of Rs 104.70 on 17 February 2016.
The stock had outperformed the market over the past one month till 5 January 2017, rising 25.31% compared with the Sensex's 2.01% rise. The scrip had also outperformed the market in past one quarter, gaining 32.69% as against the Sensex's 4.76% fall.
The small-cap company has equity capital of Rs 11.65 crore. Face value per share is Rs 5.
Digility Inc., the wholly owned subsidiary of Mastek UK, and a step down US based subsidiary of Mastek announced the acquisition of US-based leading digital commerce solution provider, TAISTech.
The TAISTech Executive Leadership Team, led by Kapil Malik and Aman Bedi, will continue to run operations as a wholly owned subsidiary of Digility Inc.
Founded in 2000, TAISTech is a digital commerce services leader that provides strategic consulting, large-scale commerce implementations and support for the Oracle Commerce and Oracle Commerce Cloud applications. In addition, TAISTech also provides omnichannel strategy, creative design, mobile app development, ongoing maintenance and training.
TAISTech, with revenues close to $30 million, has posted steady growth of 15% compounded annual growth rate (CAGR) over the past four years in the US market and has been exploring aggressive expansion plans into Latin America and Europe.
This acquisition will create a platform for Mastek's accelerated growth in the US market and will augment Mastek's 2020 vision to be a global leader in digital transformation services.
TAISTech brings experience with some the most powerful brands in the retail and manufacturing industries, including Fortune 500 customers. The company delivers a personalized customer buying experience across web, mobile, social media and brick and mortar stores. With the acquisition in place, TAISTech will also grow its service portfolio by leveraging Mastek's strength in data warehousing, business intelligence and analytics, enterprise testing and Agile process consultancy services.
Post the demerger of Majesco, Mastek has been allocating capital to expand its reach in geographies, markets and capabilities. In 2015, Mastek acquired the UK-based leader in Agile Digital Transformation, IndigoBlue and created a fully owned subsidiary, Digility Inc to renter the US market.
Mastek's consolidated net profit rose 113.7% to Rs 7.65 crore on 3.62% decline in net sales to Rs 124.90 crore in Q2 September 2016 over Q1 June 2016.
Mastek is a publicly held leading IT player with global operations providing enterprise solutions to government, retail and financial services organizations worldwide.
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