R Systems International Limited has successfully completed the acquisition of Novigo Solutions Private Limited on November 13, 2025, making it a wholly-owned subsidiary. The strategic acquisition, valued at ₹400 crore upfront, significantly enhances R Systems' artificial intelligence capabilities and expands its global digital engineering footprint.

Acquisition Completion Details

The completion follows the definitive agreement announced on August 21, 2025, after receiving all necessary regulatory approvals and satisfying customary closing conditions. Under the transaction terms, R Systems has acquired 100% equity in Novigo.

Integration Strategy and Operations

As integration begins, both organizations will move forward in a coordinated manner under a unified strategic direction. Novigo will continue delivering on its current commitments, while teams and processes are integrated gradually to ensure a smooth transition with no customer disruption. Over time, R Systems and Novigo will operate fully as one combined organization, offering expanded capabilities and a broader engineering footprint to clients worldwide.

Strategic Benefits and Market Impact

The acquisition brings substantial strategic advantages to R Systems:

Management Commentary

Nitesh Bansal, CEO Managing Director of R Systems, stated: "Combining Novigo's automation depth with our Optima AI portfolio enables us to take customers from model engineering to autonomous execution within a single ecosystem. We extend a warm welcome to the entire Novigo team as we grow our presence in Tier-2 cities and bring opportunities closer to where great talent thrives."

Praveen Kalbhavi and Mohammed Hanif, CEO and CTO of Novigo Solutions, added: "Joining R Systems opens up tremendous opportunity for our teams and customers. Our complementary capabilities and shared commitment to innovation will help us create greater value, deepen client relationships, and expand our global reach."

Company Profiles

Novigo is a digital-native company with expertise in end-to-end IT solutions such as product engineering, low-code/no-code development and intelligent automation services. The company enables enterprises across BFSI, Hi-Tech, Manufacturing, and Energy sectors to accelerate their digital transformation, with solutions powered by advanced engineering capabilities and partnerships with Microsoft, Snowflake, Databricks, UiPath and OutSystems.

R Systems International Limited , a global leader in digital product engineering, has announced a strategic acquisition that is set to reshape its position in the market. The company has entered into a definitive agreement to acquire 100% equity of Novigo Solutions, a specialist in low-code/no-code (LCNC) development and intelligent-automation services, for up to ₹400 crore.

Strategic Acquisition Details

The acquisition creates a formidable player in the digital product engineering services arena, with the combined entity boasting a revenue of ₹2,060.00 crore ($240 million) and an EBITDA of ₹380.00 crore ($45 million). The deal structure includes an upfront cash consideration of ₹400.00 crore, with an additional stock consideration linked to future EBITDA achievement.

Enhancing Capabilities and Market Reach

This strategic move is designed to significantly bolster R Systems' capabilities in several key areas:

• Product Engineering: The acquisition strengthens R Systems' digital product engineering services, particularly in the FinTech and Hi-Tech domains.
• Agentic AI: By integrating R Systems' OptimaAI Suite with Novigo's UiPath Diamond-tier automation practice and Microsoft Copilot Centre of Excellence, the combined entity is poised to lead in Agentic AI offerings.
• Market Expansion: The deal helps R Systems expand its presence in the fast-growing Middle East market and gain delivery capabilities in Bangalore and tier 2 cities like Mangalore.

Financial Highlights of Novigo

Novigo has demonstrated impressive financial performance:

• Revenue CAGR of 44% over the last three years
• 25% EBITDA margin
• Healthy free cash flow

Synergies and Growth Prospects

The acquisition is expected to be EPS accretive for R Systems from the first year. It offers significant revenue and cost synergies, including:

• Cross-selling opportunities in the Middle East
• Leveraging Novigo's low-code and automation capabilities for R Systems' global clients
• Cost advantages through delivery centers in tier 2 cities

Management Continuity

Novigo's management team, including CEO Praveen Kalbhavi and CTO Mohammed Hanif, will continue to be part of the combined platform, ensuring continuity and driving future growth.

Funding and Closure

R Systems plans to fund the upfront cash consideration through a combination of debt and internal accruals. The acquisition is expected to close in the coming weeks, subject to customary closing conditions.

Additional Corporate Actions

In a separate but related development, R Systems has also approved a private placement of rated, listed, unsecured, redeemable non-convertible debentures worth ₹275.00 crore. This move indicates the company's proactive approach to capital management and growth financing.

As R Systems International Limited embarks on this transformative journey, the acquisition of Novigo Solutions marks a significant milestone in its quest to become a leader in the evolving landscape of digital product engineering and Agentic AI. The strategic fit between the two companies, coupled with the potential for synergies and market expansion, positions R Systems for accelerated growth in the coming years.