This IT Company Announces Sale of Its Subsidiary to Sapiens UK Limited for GBP 43 Million, Expected Completion Within 4-6 Weeks

The company's 1-year return is 40 per cent, while its 3-year return stands at 79 per cent.

Coforge Limited announced on April 28, 2025, that its wholly-owned subsidiary, Coforge U.K. Limited, has agreed to sell its entire shareholding in its step-down subsidiary, Coforge Advantage Go Limited. The buyer is Sapiens UK Limited. This transaction is subject to the satisfaction or waiver of certain conditions and completion obligations as outlined in the Share Purchase Agreement. 

The total income of Coforge Advantage Go Limited contributes 1.7 per cent to the consolidated financials of Coforge Limited, and the net worth contribution is 2.7 per cent. The Share Purchase Agreement was executed on April 28, 2025. The completion of the sale is expected to take between 4 to 6 weeks from the execution date. The base consideration for the sale is GBP 43,000,000, subject to adjustments as per the Share Purchase Agreement. 

Sapiens UK Limited, the buyer, is part of the Sapiens group entities. Sapiens is a global provider of software solutions for the insurance industry. They provide end-to-end solutions to the global property and casualty, life, pension and annuities markets. Sapiens has nearly 6,000 professionals operating through its worldwide offices in North America, Europe, and Asia Pacific. Sapiens serves over 600 customers globally. Since 2010, Sapiens has acquired and integrated 20 companies. The transaction is not considered a related party transaction and is outside the purview of a Scheme of Arrangements. This transaction is not a slump sale. 

Coforge is an IT services company providing end-to-end software solutions and services. It is among the top 20 Indian software exporters. Prominent global customers include British Airways, the ING group, SEI Investments, Sabre, and SITA. Over the years, Coforge has set up subsidiaries in the US, Singapore, Australia, UK, Germany and Thailand, mainly to market and mobilise projects for the software division. The company has business partnerships with large IT companies across the world.

Coforge Limited's stock is priced at Rs 7,378. The stock has a 52-week high of Rs 9,834.75 and a 52-week low of Rs 4,301.75. Coforge Limited has a market capitalisation of Rs 49,340 crore. The company's 1-year return is 40 per cent, while its 3-year return stands at 79 per cent. The Price-Earnings (PE) Ratio is 64.4x.

Investors should keep an eye on this Large-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.