Happiest Minds unit to acquire 100% stake in Aureus Tech Systems for $8.5 million

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Happiest Minds Inc., a wholly-owned subsidiary of Happiest Minds Technologies Ltd., has executed an agreement to purchase 100% stake in Aureus Tech Systems LLC.

The company will pay an upfront cash consideration of $8.5 million and earn outs will later be given based on performance. The acquisition is likely to be completed before the end of June 2024.

Happiest Minds intends to strengthen its domain capabilities in Banking, Financial Services, Insurance (BFSI) and Healthcare and Lifesciences vertical through this acquisition, while getting access to a set of marquee customers.

Aureus is engaged in the business of providing Azure native digital product engineering services in the insurance, reinsurance and healthcare & lifesciences industries.

For calendar year 2023, Aureus Tech reported a turnover of $8.3 million, higher than the $7 million it reported in 2022 and $5.6 million in 2021.

This is the second acquisition that Happiest Minds has made within a month. On April 25, the company announced that it had executed a share purchase agreement to acquire a 100% stake in Noida-based PureSoftware Technologies Pvt. Ltd. for up to ₹779 crore.

The acquisition of PureSoftware was also intended to strengthen Happiest Minds’ capabilities in the BFSI space.

In an interaction with CNBC-TV18 on May 7, Joseph Anantharaju of Happiest Minds said that the company is likely to grow its revenue in the 35% to 40% range in financial year 2025 and that guidance includes both organic and inorganic growth. He also mentioned that the company will continue its spends in the healthcare sector.

Happiest Minds will also continue to focus on the Indian market as revenue in percentage terms has tripled on a year-on-year basis.

Shares of Happiest Minds Technologies ended flat on Wednesday at ₹824.45. The stock is down 4% over the last 12 months.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow