Coforge Ltd’s shares surged by 11.55% to ₹9,175.00 on the BSE at 10:32 AM on Thursday following the announcement of its subsidiary’s acquisition of Xceltrait Inc., a specialist in ServiceNow’s Financial Services Operations (FSO) and Customer Service Management (CSM) modules. In addition, Coforge declared its third interim dividend for the fiscal year at ₹19 per share.
The acquisition is aimed at enhancing Coforge’s capabilities in the ServiceNow ecosystem, specifically in the P&C insurance domain. The transaction involves Coforge Inc., a wholly owned subsidiary of Coforge Ltd., acquiring 100% of Xceltrait Inc.’s shares for an estimated purchase consideration of about $17.85 million. This includes an initial payment of approximately $7 million and potential earn-out payments of up to $10.85 million based on revenue and EBITDA targets achieved in FY26 and FY27. The completion of the transaction is anticipated by February 28, 2025.
Furthermore, Coforge announced a third interim dividend of ₹19 per equity share for FY25, with the Record Date set as January 30, 2025. Shareholders eligible for the dividend payment will receive it within 30 days from the declaration date.
Established in the USA in 2006, Xceltrait Inc. has a proven track record in implementing ServiceNow solutions for financial institutions, with a focus on the P&C insurance sector. The acquisition of Xceltrait Inc. will enable Coforge to expand its offerings in this field and better cater to its clients.
Coforge is a global IT solutions provider that facilitates digital transformation for enterprises globally by offering services such as digital engineering, cloud solutions, and enterprise applications.
Xceltrait Inc. is a prominent provider of ServiceNow consulting services, specializing in FSO and CSM solutions. The company has a successful history of implementing solutions for clients in the financial services sector.
The stock of Coforge hit a 52-week high of ₹10,017.95 on December 30, 24, and a low of ₹4,291.05 on May 9, 2024.
