Don’t miss the latest developments in business and finance.

Majesco hits the roof on selling US arm to Thoma Bravo

Image
Capital Market
Last Updated : Jul 21 2020 | 11:50 AM IST

Shares of the IT firm hit an upper circuit of 5% at Rs 401.15 after the company signed a pact to sell its US subsidiary to private equity firm Thoma Bravo.

As on date, the company holds 3,21,11,234 common stock of the US subsidiary. The Nasdaq-listed arm of the Indian company will be sold at $13.1 per share. The deal, which is expected to close before end of 2020, values the US unit at $594 million. Following the closing of the transaction, the unit will operate as a privately-held company.

Majesco India will get $420.66 million (about Rs 3,150 crore) from this deal compared to the total investments made by the company in US subsidiary of $68.67 million, to date. Majesco India has a current market capitalisation of Rs 1,153.19 crore.

The company's board decided that the proceeds from the disposal of the investment in the US subsidiary (net of costs) will be distributed to the shareholders of the company in a tax efficient manner as expeditiously as possible.

Total consolidated income of the company for the financial year 2019-20 was Rs 1062.20 crore, of which 99.04% was contributed by the US subsidiary.

Majesco provides technology, expertise, and leadership that helps insurers modernize, innovate and connect to build the future of their business - and the future of insurance - at speed and scale.

Powered by Capital Market - Live News

Disclaimer: No Business Standard Journalist was involved in creation of this content

More From This Section

First Published: Jul 21 2020 | 10:45 AM IST

Next Story