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Coforge has announced a 1:5 stock split. The record date will be announced soon.
Coforge announces 1:5 stock split.
Coforge Stock Split: IT firm Coforge has announced a share split in the ratio of 1:5. This means that one stock with a face value of Rs 10 will be split into five stocks with a face value of Rs 2 each. The company stated that the record date for the stock split will be announced soon.
Coforge shares will remain in focus today following the announcement of stock split and 100% acquisition in Rythmos Inc.
Yesterday, Coforge shares ended -2.07 per cent lower at Rs 7204.10 apiece. The stock’s 52-week movement indicates a high of Rs 10,017 and a low of Rs 4,291.05.
Coforge Acquisition
Rythmos Inc. (“Target Company”) is being acquired. Rythmos’ turnover for the calendar year ended December 31, 2024, was $25.3 million (INR equivalent 2,204 million at an exchange rate of USD 1 = INR 87.0).
The acquisition of Rythmos Inc. is not a related party transaction. No promoters, promoter groups, or group companies have any interest in the Target Company Rythmos Inc. operates in the IT/ITeS industry.
The acquisition will enhance the company’s data practice and cloud engineering capabilities. Rythmos brings valuable data expertise and strong industry knowledge in the airlines sector.
No governmental or regulatory approvals are required for the acquisition. The acquisition is expected to be finalized by March 31, 2025, or a mutually agreed upon date, subject to the terms of the Stock Purchase Agreement.
The consideration for the acquisition will be paid in cash.
Coforge Inc. will acquire 100% of Rythmos’ stake for an initial upfront purchase consideration of $30.0 million. This consideration is subject to adjustments and the fulfillment of certain conditions as outlined in the Stock Purchase Agreement. Additionally, an earnout amount, capped at $18.7 million, will be paid to the Target Company’s stockholders in two tranches based on the achievement of specific revenue and EBITDA targets in 2025 and 2026.