Coforge shares zoom 11% on three key announcements; here is everything you need to know

1:5 stock split

The company, as intimated earlier, announced that its board has approved the sub-division of its existing shares in the ratio of 1:5.

This means that one equity share having a face value of ₹10 each will be divided into five equity shares having a face value of ₹2 each, fully paid up.

The company, in its filing to stock exchanges, said, "With a view to enhance the liquidity of the Company's equity shares and to encourage the participation of small investors by making it more affordable to invest in the equity shares of the Company, leading to enhanced shareholder base," it has decided to split the shares.

The filing said that the board has approved "the alteration in the equity share capital of the company by sub-division / split of existing equity shares of the face value of ₹10 each, fully paid-up into 33,43,65,495 (Thirty three crore forty three lakhs sixty five thousand four hundred ninety five) equity shares of the face value of ₹2 each, fully paid-up, subject to the approval of the members of the company."

The record date for the sub-division / split of existing equity shares will be intimated in due course.

Partnership with Sabre Corporation

The IT solutions firm said that has entered into a 13-year partnership with travel technology company Sabre Corporation.

The agreement, valued at about $1.56 billion (about ₹13,607 crore), will see Coforge as a key partner in helping Sabre speed up product development and launch AI solutions.

"2025 is a pivotal year for Sabre. Laser focus, ruthless prioritisation, and key technology investments have positioned us to intensify innovation and reinforce our pursuit of being the most valued global technology platform in travel," Coforge said.

"Sabre is in an advantaged position to pioneer, build, and deploy the next generation of solutions alongside our continuously expanding travel marketplace, and we look forward to Coforge’s partnership in expediting the process," said Kurt Ekert, CEO and President of Sabre.

Rythmos Inc Acquisition

In an exchange filing, the company said the turnover of Rythmos Inc for the calendar year ended December 31, 2024, is $25.3 million (INR equivalent 2,204 million, at an exchange rate of USD 1=INR 87.0).

The entity being acquired belongs to the IT / ITes industry, it added.

Coforge said that the objective behind the acquisition is that the company is focusing on enhancing its data practice and cloud engineering capabilities. Rythmos helps in adding data capabilities along with strong industry knowledge in the airline industry.

No government or regulatory approval is required for the Rythmos Transaction, the filing added.

Coforge said that Rythmos Transaction is expected to be completed by March 31, 2025, subject to the terms and conditions set out in the Stock Purchase Agreement.

Rythmos Transaction involves the acquisition of a 100% stake in the company by Coforge Inc., with an initial upfront purchase consideration of $30.0 million subject to further adjustments and completion of certain conditions precedent, per the Stock Purchase Agreement.

An additional earnout amount will be payable to the stockholders of the Target Company in two tranches based on the achievement/performance of certain revenue and EBITDA targets for CY25 & CY26, subject to a maximum payout of $18.7 million.