Indegene Expands European Footprint with EUR 8.5 Million Acquisition of Cake Group

Indegene Limited , a global technology-led healthcare solutions provider, has announced a strategic move to strengthen its European presence through the acquisition of Cake Group, a healthcare marketing and communications agency operating in the DACH region (Germany, Austria, and Switzerland).

Acquisition Details

Indegene's wholly-owned subsidiary, Indegene Ireland Limited, has signed a Share Purchase Agreement to acquire 100% equity shares in Cake Group for a consideration not exceeding EUR 8.50 million, subject to working capital and net debt adjustments. The transaction is structured as an all-cash deal with deferred performance and milestone-based considerations.

About Cake Group

Cake Group is a specialized healthcare marketing and communications agency headquartered in Vienna, Austria. The company offers a range of services including brand strategy, creative campaign development, and digital marketing solutions. With approximately 25 employees across the DACH region, Cake Group has demonstrated consistent revenue performance over the past three years:

Financial Year	Revenue (EUR Million)
2024	3.78
2023	3.10
2022	3.18

Strategic Implications

This acquisition aligns with Indegene's strategy to expand its European footprint and enhance its capabilities in healthcare communications. By integrating Cake Group's expertise, Indegene aims to strengthen its service offerings to life sciences clients in the DACH region.

Transaction Timeline and Regulatory Approvals

The acquisition is expected to be completed in January 2026, subject to clearance under the Austrian Investment Control Act (InvKG). This regulatory approval is a crucial step in finalizing the transaction.

Market Impact

For Indegene, this acquisition represents a significant step in its European expansion strategy. It not only broadens the company's geographical presence but also adds specialized healthcare marketing capabilities to its portfolio. The move is likely to enhance Indegene's competitive position in the European healthcare solutions market.

As the healthcare sector continues to evolve, particularly in terms of digital marketing and communications, this acquisition positions Indegene to better serve the needs of pharmaceutical and life sciences companies in the DACH region.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.72%	+2.99%	-1.05%	-12.35%	-20.50%	-7.05%

Indegene Limited , a leading digital-first, life sciences commercialization company, has reported a robust performance for the second quarter of fiscal year 2026, with significant revenue growth and strategic acquisitions to bolster its market position.

Financial Highlights

Indegene posted impressive financial results for Q2 FY26:

Metric	Q2 FY26	YoY Growth	QoQ Growth
Revenue	₹8,042.00 million	17.1%	5.7%
EBITDA Margin (Adjusted)	18.2%	-	-2%
PAT	₹1,021.00 million	11.4%	-

The company's revenue growth in USD terms stood at 12.4% year-on-year and 3.6% sequentially. The EBITDA margin, adjusted for one-time non-recurring M&A costs, experienced a 2% sequential decline, primarily due to annual wage hikes effective July 2025.

Segment Performance

The Enterprise segment, comprising Enterprise Commercial and Enterprise Medical Solutions, which contributes 88.5% of Indegene's revenue, grew by 8.1% quarter-on-quarter. However, this growth was partially offset by a 15.8% degrowth in the Brand Activation segment.

Strategic Acquisitions

Indegene announced two strategic acquisitions in October 2025:

BioPharm: A U.S.-based omnichannel marketing company, acquired for approximately $65.00 million.
WARN & CO: A U.K.-based boutique consulting firm, acquired for GBP 2.00 million plus future performance-linked payouts.

These acquisitions are expected to enhance Indegene's capabilities in omnichannel campaign execution and consulting services.

Business Highlights

Secured two large deals exceeding $3.00 million Annual Contract Value (ACV) in the Enterprise Commercial Solutions segment.
Won four deals in the $1-3 million ACV range across Enterprise Commercial and Enterprise Medical segments.
Increased active customer base to 76 from 70 in the previous quarter.
Tectonic offering generated approximately $2.00 million in revenue from four customers in H1 FY26.

Market Outlook and Strategy

Manish Gupta, Chairman and CEO of Indegene, commented on the evolving market dynamics: "We continue to see clients actively building on earlier digital and centralization themes. This is driven by top-down pressures the industry faces and the potential of AI to improve efficiency and effectiveness."

The company anticipates a temporary EBITDA margin compression of about 1.5% in the near term due to strategic investments, with expectations of recovery over 6-8 quarters.

Conclusion

Indegene's strong Q2 performance, coupled with strategic acquisitions and a growing deal pipeline, positions the company well for future growth. The focus on AI-driven initiatives and expanding capabilities in omnichannel marketing and consulting services aligns with the evolving needs of the life sciences industry.

As the pharmaceutical sector navigates challenges such as pricing pressures and regulatory changes, Indegene's digital-first approach and expanding service offerings may provide valuable solutions for clients seeking to enhance efficiency and effectiveness in their operations.