Shares of R Systems International Ltd rallied 17% to hit a day’s high of Rs 496.90 on 22nd August after the firm announced that it had entered into a definitive agreement to acquire Novigo Solutions, a specialist in low-code/no-code (LCNC) development and intelligent automation services.

R Systems will pay Rs 400 crore upfront to acquire Novigo Solutions. An additional stock payout is tied to future EBITDA performance. The deal is expected to boost R Systems’ earnings per share from the first year.

The combined company is expected to generate Rs 2,060 crore in revenue and Rs 380 crore in EBITDA. This creates a robust digital product engineering services platform. Novigo recorded a 44% CAGR in revenue over the past three years. It has a 25% EBITDA margin and solid cash flow, which will add significant growth momentum.

The acquisition will merge R Systems’ OptimaAI Suite with Novigo’s UiPath Diamond-tier automation practice. It will also help R Systems strengthen its presence in the Middle East. They will expand in Bengaluru and enter tier-2 cities, such as Mangalore.

Novigo’s management will remain in place to drive growth. CEO Nitesh Bansal said the integration adds not only scale but also high-margin, complementary capabilities. This will help clients transition from model engineering to autonomous execution under one roof.

Barclays advised Novigo on the deal, which is expected to close in the coming weeks, subject to customary approvals.

At 11:35 AM, the shares of R Systems were trading 12.36% higher at Rs 475.85 on NSE.

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