R Systems Acquires Novigo for ₹400 Crore to Build Global AI Powerhouse

R Systems International Limited, backed by Blackstone, has entered into a definitive agreement to acquire Novigo Solutions, a specialist in low-code/no-code development and intelligent automation services, in a transaction valued at over ₹1,000 crore including performance-linked stock consideration. The acquisition will create a global digital product engineering powerhouse with combined revenues of approximately ₹20,600 million (~$240 million) and EBITDA of ₹3,800 million (~$45 million), and is expected to be earnings-per-share accretive from the first year. Novigo Solutions has demonstrated strong growth with a 44% revenue CAGR over the past three years and a 25% EBITDA margin, serving sectors such as BFSI, hi-tech, and manufacturing with a 1,000-strong workforce primarily based in Mangaluru. The deal will integrate R Systems’ OptimaAI Suite with Novigo’s UiPath Diamond-tier automation practice and Microsoft Copilot Centre of Excellence, enhancing capabilities for engineering, deployment, and management of AI agent fleets on a unified platform. This acquisition expands R Systems' geographic presence in the Middle East and India, adding delivery centers in Bengaluru and tier-2 cities like Mangaluru, while Novigo’s leadership team will continue to drive growth within the combined entity. The deal is part of a broader trend of significant acquisitions in the Mangaluru and Udupi tech sectors, underscoring the region's emerging prominence in India's technology M&A landscape.