Coforge share price: Soars 12% on acquiring Xceltrait Inc post Q3

Shares of Coforge Ltd soared 11.55 per cent to ₹9,175.00 on the BSE at 10:32 AM on Thursday after the company’s wholly owned subsidiary announced the acquisition of Xceltrait Inc., a specialist in ServiceNow’s Financial Services Operations (FSO) and Customer Service Management (CSM) modules. Additionally, Coforge declared its third interim dividend for the fiscal year of ₹19 per share.

According to its exchange filing, the company stated that the acquisition would enhance Coforge’s capabilities in the ServiceNow ecosystem, particularly in the P&C insurance domain. The transaction will see Coforge Inc., a wholly owned subsidiary of Coforge Ltd., acquire 100 per cent of Xceltrait Inc.’s shares for an aggregate purchase consideration of approximately $17.85 million.

This includes an initial payment of around $7 million and potential earn-out payments of up to $10.85 million based on revenue and EBITDA targets achieved in FY26 and FY27.

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Furthermore, the transaction is expected to be completed by February 28, 2025.

The company also declared a third interim dividend of ₹19 per equity share for FY25. The dividend will be paid on shares with a face value of ₹10 each.

Coforge has set January 30, 2025, as the “Record Date” to determine shareholders eligible for the dividend payment. The dividend is expected to be paid within 30 days from the declaration date.

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Xceltrait Inc., incorporated in the USA in 2006, has a strong track record in implementing ServiceNow solutions for financial institutions, focusing on the P&C insurance sector. The company’s expertise will enable Coforge to expand its offerings in this area and serve its clients more effectively.

Coforge is a global IT solutions provider that enables digital transformation for enterprises worldwide. With a focus on innovation and customer success, Coforge delivers a range of services, including digital engineering, cloud solutions, and enterprise applications.

Xceltrait Inc. is a leading provider of ServiceNow consulting services, specializing in FSO and CSM solutions. The company has a strong track record of successful implementations for clients in the financial services industry.

The stock hit a 52-week high of ₹10,017.95 on December 30, 24, and reached a low of ₹4,291.05 on May 9, 2024.