Adroit Infotech shares jump 5% as firm to buy majority stake in Verso Altima Group

Adroit Infotech Ltd shares jumped 5% in Monday's trade, after the company entered into a non-binding agreement to acquire a majority equity stake in Verso Altima Group d.o.o., a business integrator and digital solutions provider headquartered in Zagreb, Croatia. The proposed acquisition is aimed at expanding Adroit Infotech's presence in Europe and strengthening its capabilities in SAP services, telecom engineering and digital transformation.

Verso Altima Group has standalone revenue of approximately 13 million euros, according to the company's October 16 announcement. Following the successful completion of the transaction, Adroit Infotech expects its consolidated revenue to reach an estimated $23-25 million, equivalent to approximately ₹225-250 crore, as stated in its exchange filing. The proposed acquisition is expected to combine Verso Altima Group's European presence with the technical capabilities and proprietary products of Adroit Infotech's subsidiary, Verso Altima India Ltd.

Adroit Infotech shares touched a high of ₹12.70, up 5% from their previous close of ₹12.10. The stock opened at ₹12.70 and also touched a low of ₹12.70 during the session.

Adroit Infotech acquisition: Funding and strategic plans

The company said the transaction would be completed without third-party debt. It plans to fund the acquisition through a combination of internal accruals, proceeds from a preferential equity issue and a rights issue. The cost of the acquisition is yet to be finalised and will be determined after financial due diligence and the execution of a definitive share purchase agreement.

The proposed deal remains subject to due diligence, the execution of definitive share purchase agreements, necessary board authorisations and customary regulatory approvals in India and Croatia. The October 16 filing describes the agreement as non-binding, meaning the acquisition is not yet complete.

How the proposed acquisition could expand Adroit Infotech's business

The company said the combination would strengthen its capabilities in SAP Billing and Revenue Innovation Management (BRIM), which covers areas such as subscription billing, flexible pricing, partner revenue settlements and order-to-cash automation. It also expects to expand opportunities in SAP licensing, systems integration, implementation and consulting, application management, and managed services.

The proposed combination would bring together Verso Altima Group's European client-facing operations with the technical delivery capabilities of Verso Altima India Ltd. The latter has more than 250 SAP professionals and proprietary products including VAI 360 CRM, VAI Check Box and VAI IntelHubX, according to the company's announcement.