R Systems shares surge 17% on acquiring Novigo Solutions for ₹400 crore

Shares of Blackstone-backed R Systems rose as much as 17% to hit an intraday high of ₹496.95 after the company post market hours on Thursday announced acquisition of Novigo Solutions, a specialist in low-code/no-code (LCNC) development and intelligent-automation services for an upfront cash consideration ₹400 crore.

"The strategic acquisition creates a global digital product engineering services powerhouse with ₹2,060 crore revenue and ₹380 crore EBITDA, offering engineering, deployment, and management of enterprise-scale fleets of AI agents under a single, governed platform," R Systems said in a press release.

Novigo has been growing strongly and delivered 44% revenue CAGR over the last three years with 25% EBITDA margin and healthy free cash flow, R Systems said.

"This strategic move positions R Systems well to address the evolving market landscape, as enterprises reallocate IT budgets towards autonomous, compliance-ready AI workflows. The acquisition integrates R Systems’ OptimaAI Suite with Novigo’s UiPath Diamond-tier automation practice and Microsoft Copilot Centre of Excellence, positioning the combined entity as a leader uniquely equipped to design, orchestrate, and operate the intelligent enterprises of the future. The acquisition helps R Systems expand its offering in the fast growing Middle East region and gain delivery presence in Bangalore and Tier 2 cities (e.g. Mangalore)," R Systems said.

"This is a pivotal moment for R Systems, our clients, and our investors," said Nitesh Bansal, CEO of R Systems.

"As enterprises move from pilots to production-grade AI agents which are governed by robust orchestration and compliance frameworks, the acquisition of Novigo Solutions acts as an accelerator in our journey to lead the Agentic AI revolution. By integrating Novigo’s automation depth into our OptimaAI portfolio, we can now take customers from model engineering to autonomous execution under one roof. It's not just about adding scale; it is about adding synergistic, high-margin capabilities that translate into stronger outcomes for our clients. We are thrilled to welcome the highly talented Novigo team to the R Systems family," Bansal added

As of 11:06 am, R Systems shares traded 10.22% higher at ₹467.15, outperforming the SENSEX which was down 0.7%.