IT solutions and AI-engineering services provider Coforge had earlier announced its plan to acquire Hyderabad-based software testing company Cigniti Technologies. That acquisition process has now been officially completed. Coforge recently made this announcement.
The deal was completed after receiving shareholder approval, clearance from the National Company Law Tribunal (NCLT), and all regulatory approvals including the Competition Commission (CCI) and SEBI.
According to Coforge's statement, the main objectives of this acquisition were to leverage Cigniti's long-term client relationships, expand the healthcare business, and increase Coforge's presence in the Midwest and Western regions of America.
Significant changes in business scale have already been observed following the deal. Previously, Cigniti's top two clients generated annual revenues of $1.5 crore and $1 crore respectively. Now those amounts have increased to approximately $4.5 crore and $3 crore.
Coforge CEO and Executive Director Sudhir Singh said, "This acquisition is very important for the company. It will serve as a model for future strategic expansion."
Cigniti Technologies is a quality engineering, software testing, and digital assurance company. By merging with Coforge, it will create a large organization worth approximately $250 crore.
Notably, just a week ago, Coforge received approval to acquire American company Encora. The company had announced the purchase of Encora for approximately $235 crore in December last year.
