R Systems shares surge 17%: Two factors behind the rally 

Shares of R Systems International, an IT enables services firm, surged nearly 17% in early deals on Friday after the company said  it has inked a definitive agreement to buy Novigo Solutions, a specialist in low-code / no-code (LCNC) development and intelligent-automation services.

The upfront cash consideration for the transaction is Rs 400 cr, with an additional stock consideration linked to future EBITDA achievement. The acquisition will be EPS accretive for R Systems since first year. 

R Systems said Novigo is a highly accretive and synergistic acquisition.It adds capabilities in niche Software Product Engineering and Agentic AI domain. 

Novigo has a strong financial profile  and delivered 44% Revenue CAGR over last three years with 25% EBITDA margin and healthy free cash flow, the firm added. 

Additionally, the company's board also gave its nod to raise Rs 275 crore via issue of non-convertible debentures on a private placement basis. 

The NCDs will be listed on BSE. 

R Systems stock rose 16.68% to Rs 494.55 today against the previous close of Rs 423.85 on BSE. Market cap of the firm stood at Rs  5,798.43 crore. 

Nitesh Bansal, CEO & Managing Director, R Systems said, "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." 

R Systems is a global product engineering and digital solutions provider. 

Novigo is a digital-native company with expertise in end-to-end IT solutions such as product engineering, low-code/no-code (LCNC) development and intelligent automation services. 

Meanwhile, Sensex fell 327 pts to 81,673 and Nifty slipped 102 pts to 24,981 in early deals on Friday.