R Systems to acquire Novigo Solutions for INR 400 crore cash deal
R Systems has entered into a definitive agreement to acquire Novigo Solutions, increasing its presence in low-code/no-code development and intelligent automation services.
The transaction will bring together R Systems' OptimaAI Suite and Novigo's UiPath Diamond-tier automation practice, along with its Microsoft Copilot Centre of Excellence. In joining forces, the companies aim to broaden their service capability to deliver end-to-end engineering, deployment, and management of large-scale AI agent platforms.
Financial terms
Under the terms of the agreement, R Systems will provide an upfront cash consideration of INR 400 crore for Novigo Solutions, with additional stock consideration linked to future EBITDA achievements. The combined entity will achieve revenues of INR 20,600 million (approximately USD $240 million) and EBITDA of INR 3,800 million (approximately USD $45 million). The acquisition is projected to be EPS accretive for R Systems from its first year of consolidation.
Novigo Solutions has achieved a 44% revenue compound annual growth rate over the past three years, with an EBITDA margin of 25% and consistent free cash flow. This performance has positioned Novigo as an attractive acquisition candidate for R Systems.
Strategic positioning
The decision to acquire Novigo comes as enterprises are shifting IT investments towards autonomous, compliance-ready AI workflows. By integrating their portfolios, R Systems and Novigo intend to provide a comprehensive offering to organisations seeking to adopt large-scale AI and automation solutions.
The combined strength of the OptimaAI Suite with Novigo's recognised expertise in intelligent automation is designed to help clients transition from model engineering to operationalising autonomous AI agents under robust governance structures.
"This is a pivotal moment for R Systems, our clients, and our investors," said Nitesh Bansal, CEO of R Systems. "As enterprises move from pilots to production-grade AI agents which are governed by robust orchestration and compliance frameworks, the acquisition of Novigo Solutions acts as an accelerator in our journey to lead the Agentic AI revolution. By integrating Novigo's automation depth into our OptimaAI portfolio, we can now take customers from model engineering to autonomous execution under one roof."
"It's not just about adding scale; it is about adding synergistic, high-margin capabilities that translate into stronger outcomes for our clients. We are thrilled to welcome the highly talented Novigo team to the R Systems family."
The combined organisation will also extend R Systems' operational footprint, particularly in the Middle East, as well as enhance its delivery capabilities by establishing a presence in Bangalore and expanding into additional Tier 2 cities such as Mangalore. Novigo's management team will continue with the combined firm and will help drive continued growth.
Comments from Novigo Solutions
"We have built a world-class practice in making businesses faster and smarter through low-code platforms and intelligent automation. Joining R Systems accelerates our mission to deploy agentic AI and automation tools at scale. Now, supercharged by R Systems' OptimaAI Suite, our UiPath and Microsoft agentic workforce can be deployed to solve our clients' most complex problems. Our high-quality talent across Mangalore, emerging as India's Silicon Beach, and all our locations will complement the global engineering strengths of R Systems. We look forward to growing the business further with R Systems," said Praveen Kalbhavi and Mohammed Hanif, CEO and CTO of Novigo Solutions.
The acquisition supports R Systems' strategy to establish itself as a prominent provider in digital product engineering with a focus on Agentic AI technologies. It enhances its offerings for clients and partners looking to implement advanced automation and AI-driven productivity improvements.
Barclays acted as the exclusive financial advisor to Novigo Solutions on the transaction. The acquisition remains subject to customary closing conditions and is expected to close in the coming weeks.
