R Systems Share Price Surges 17% Following ₹400 Crore Novigo Solutions Acquisition

Market Performance

Shares of R Systems International Ltd. soared 17% on Friday, August 22, after the company revealed its acquisition of Novigo Solutions, a specialist in low-code/no-code (LCNC) development and intelligent-automation services.

• At 10:20 AM, nearly 70 lakh shares changed hands
• This is significantly higher than the 20-day average of 30,000 shares
• R Systems share price jumped to ₹491.45 per share

The gains were supported by strong trading volumes, reflecting heightened market interest in the company’s expansion strategy.

Main News: Acquisition of Novigo Solutions

R Systems announced it has entered into a definitive agreement to acquire Novigo Solutions.

Key highlights of the deal:

• Upfront cash consideration: ₹400 crore
• Additional stock consideration: Linked to future EBITDA achievement
• Acquisition impact: EPS-accretive from the first year

The acquisition positions R Systems as a global digital product engineering services leader, combining expertise in AI, automation, and enterprise-scale digital solutions.

Company Details and Financial Snapshot

The combined platform of R Systems and Novigo Solutions brings impressive financial metrics:

• Total revenue: ₹2,060 crore
• EBITDA: ₹380 crore
• Novigo revenue CAGR (last 3 years): 44%
• Novigo EBITDA margin: 25%
• Healthy free cash flow from Novigo

Additional strategic benefits:

• Integration of R Systems’ OptimaAI Suite with Novigo’s UiPath Diamond-tier automation
• Expansion into Middle East markets
• New delivery presence in Bengaluru and tier-2 cities like Mangalore
• Novigo’s management team remains onboard to drive growth

CEO Nitesh Bansal stated:

"Integrating Novigo's automation depth into our OptimaAI portfolio allows us to take customers from model engineering to autonomous execution under one roof, adding high-margin capabilities and stronger client outcomes."

Summary

The acquisition of Novigo Solutions marks a significant milestone for R Systems, creating a combined entity with over ₹2,000 crore in revenue and a strong global presence in digital engineering and automation.

The deal is expected to close in the coming weeks, subject to customary conditions. With robust financials and enhanced service offerings, the R Systems share price reflects market optimism and strong investor confidence.