 "Mastek rallies over 20% in two days on acquisition plan of Trans American Information")
Mastek rose 18% to Rs 178, extending its previous day’s 3% gain on the National Stock Exchange (NSE), after the information technology solution provider on Tuesday said its board approved the acquisition of 100% stake in Trans American Information Systems for Rs 12.5 crore.
The trading volumes on the counter jumped more than 10-fold with a combined 3.54 million shares changed hands on the NSE and BSE till 12:14 pm. The Nifty50 index was down 0.2% at 8,205 points.
“This acquisition will significantly support Mastek in digital drive and will help in achieving and sustaining development of long term internal and core competencies,” Mastek said in a statement.
Trans American Information Systems is privately held having presence in India supporting US customers with around 121 employees. The target companies provide end-to-end ecommerce services including strategy, creative design, implementation, and managed services, it added.
The board has also give approval for a corporate guarantee and mortgage, to secure the loan facility sanctioned by Axis Bank UK to Digility Inc. US, a step-down subsidiary of the company, to secure term loan facility of USD 10 million to be availed by Digility Inc.
Digility Inc will use this loan facility to part finance the acquisition of two US based IT consulting and software services companies and shall accordingly, enter into a share purchase agreement in respect of the said acquisitions.
Digility Inc will acquire 100% in TaisTech LLC, USA and Trans American Information Systems Inc. USA for an aggregate of upto $23.75 million.
The trading volumes on the counter jumped more than 10-fold with a combined 3.54 million shares changed hands on the NSE and BSE till 12:14 pm. The Nifty50 index was down 0.2% at 8,205 points.
“This acquisition will significantly support Mastek in digital drive and will help in achieving and sustaining development of long term internal and core competencies,” Mastek said in a statement.
Trans American Information Systems is privately held having presence in India supporting US customers with around 121 employees. The target companies provide end-to-end ecommerce services including strategy, creative design, implementation, and managed services, it added.
The board has also give approval for a corporate guarantee and mortgage, to secure the loan facility sanctioned by Axis Bank UK to Digility Inc. US, a step-down subsidiary of the company, to secure term loan facility of USD 10 million to be availed by Digility Inc.
Digility Inc will use this loan facility to part finance the acquisition of two US based IT consulting and software services companies and shall accordingly, enter into a share purchase agreement in respect of the said acquisitions.
Digility Inc will acquire 100% in TaisTech LLC, USA and Trans American Information Systems Inc. USA for an aggregate of upto $23.75 million.