Newgen Software Technologies on Tuesday said its consolidated net profit increased about 35 per cent to Rs 47.8 crore in December quarter 2021-22.
The company also announced the acquisition of Number Theory Software. Newgen registered a net profit of Rs 35.41 crore in December quarter 2020-21.
Revenue from operations grew 9.1 per cent to Rs 202.5 crore in the third quarter of 2021-22 from Rs 185.51 crore in the year-ago period, Newgen said in a regulatory filing.
In a separate filing, Newgen said its Board has approved the purchase of 100 per cent of the paid-up equity shares of Number Theory Software from its existing shareholders, Tarun Gulyani and Rajan Nagina.
Post completion of the acquisition – which is subject to customary conditions precedent – the target company will become a wholly-owned subsidiary of Newgen, it added.
“Newgen will be making a closing payment aggregating to approximately Rs 7,02,73,340 to the promoters of target company towards 100 per cent of the equity shares. Further, the founders would receive deferred amount of an aggregate sum of Rs 7,02,73,340 in a staggered manner over a period of three years, subject to certain conditions and their continued employment with Number Theory/Newgen,” the filing said.
It added that as a part of conditions precedent to the closing of the transaction, Newgen will also grant ICD of approximately Rs 2.41 crore to Number Theory to settle its outstanding dues such as dues to debentures holders, option holders, bank loan, directors’ loan etc.
Number Theory brings AI (artificial intelligence) to enterprises through its Enterprise AI platform and data science capabilities to help its customers accelerate innovation and grow revenue. Its revenue in 2020-21 stood at Rs 3.32 crore.
The acquisition “strongly complements Newgen’s low code approach and extends the same to the area of data sciences”, the filing said.
It will offer new revenue opportunity/larger wallet share from existing enterprise customers; supplement solution/ accelerators with AI/ML based capability, solution enhancements; and enable process AI enhancements process discovery, process mining, self-learning automation, capture end-to-end process data into data lakes for further analytics.
The transaction will also enhance brand appeal with DSML, AI/ML (machine learning) product offering, and strengthen Low Code association for Newgen, the filing said.