Coforge Cigniti Merger

Описание: Coforge and Cigniti Technologies Move Toward Merger with EY and Axis Capital Finalizing Terms

Coforge and Cigniti Technologies are moving forward with plans for a merger, with EY and Axis Capital appointed to finalize the terms. Sources reveal that the final details will be presented to shareholders within two weeks.

Deal Details:
**Merger Structure**: Coforge will absorb the listed Cigniti Technologies.
**Share Issuance**: Cigniti Technologies shareholders will receive Coforge shares once an acceptable swap ratio is determined by advisers.
**Ownership**: Coforge, formerly known as NIIT Technologies, already holds a 54% stake in Cigniti Technologies.

Financing the Deal:
Coforge acquired a majority stake in Cigniti Technologies on May 2 and subsequently raised Rs 2,240 crore through a qualified institutional placement (QIP) to fund the transaction.

Synergies and Growth:
The merger is expected to generate significant synergies, combining Coforge’s established client base on the east coast of North America with Cigniti’s strong presence in the west and Midwest regions.

Despite challenging growth in the $250 billion IT industry over the past two years, Coforge has shown impressive growth and profitability. Under the leadership of CEO Sudhir Singh, the company reached the $1 billion revenue milestone in April 2023 and aims to leverage AI to scale to $5 billion in the near future.

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