Happiest Minds shares rise as firm to buy this Noida-based software products firm

Shares of Happiest Minds Technologies rose over 2% in early deals today after firm said it plans to acquire Noida-based PureSoftware Technologies Private Limited for up to Rs 779 crore. The acquisition, executed through a Share Purchase Agreement, lead to Happiest Minds obtaining 100% equity stake in PureSoftware, making it a wholly owned subsidiary of the company.

Happiest Minds Technologies shares gained 2.44% to Rs 838.55 against the previous close of Rs 818.55 on BSE. Market cap of the firm rose to Rs 12,203 crore. Total 0.15 lakh shares of the firm changed hands amounting to a turnover of Rs 1.21 crore in the current session.

The stock hit a 52-week low of Rs 738.05 on March 28 2024 and rose to a 52 week high of Rs 1022.30 on June 22, 2023.

Happiest Minds shares have a beta of 0.7, indicating low volatility in a year. In terms of technicals, the relative strength index (RSI) of the stock stands at 53.7, signaling it's trading neither in the overbought nor in the oversold zone. Happiest Minds shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day but lower than the 100 day, 150 day and 200 day moving averages. 

PureSoftware Technologies, with a paid-up capital of Rs 3.23 crore and a turnover of Rs 351 crore for fiscal 2024, will be acquired through an upfront cash consideration of Rs 635 crore. Additionally, a deferred consideration of up to Rs 144 crore will be payable at the end of FY25, subject to the achievement of set performance targets, Happiest Minds said.

Upon completion of the transaction, Happiest Minds will possess 100% equity interest in PureSoftware, acquiring 3,24,12,166 equity shares from its existing shareholders.

This strategic acquisition is poised to strengthen Happiest Minds' domain capabilities in key sectors such as Banking, Financial Services, Insurance (BFSI), and Healthcare and Life Sciences. Furthermore, it will provide the company with access to a portfolio of prestigious clients, as highlighted in the company's press release.