Coforge -  Acquisition Of Business Process Management Company SLK Global Solutions: ICICI Direct
An employee uses a headset to speak to a customer at a call cente in Bengaluru, India. (Photographer: Dhiraj Singh/Bloomberg)

Coforge - Acquisition Of Business Process Management Company SLK Global Solutions: ICICI Direct

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

Coforge Ltd. has entered into an agreement with SLK Global Solutions Pvt Ltd. to acquire a 60% stake in the company for a consideration of ~$122 million (Rs 918 crore) leading to a valuation of approximately three times FY20 enterprise value/sales.

The company will acquire additional 20% over the next two years.

The company will fund the acquisition via debt (~Rs 375 crore or $50 million) and rest through cash.

The acquisition will add ~10% to the company’s topline. We believe it has robust Ebitda and profit after tax margin.

Hence, we expect SLK Global Solutions to be PAT margin accretive.

Click on the attachment to read the full report:

ICICI Direct Coforge Company Update.pdf

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