Mastek to acquire Trans American Information; stock up 10 %

Information technology solution provider, Mastek in an exchange filing informed that the board of directors of the Company at their meeting held today i.e. Tuesday, December 13, 2016 has approved the acquisition of Trans American Information Systems by the company.

On completion of all the closing formalities, Trans American Information Systems will become a 100 per cent subsidiary of the company. The company being acquired has around 121 employees and earned revenues of Rs 20.5 crores (year ended March 2016). 

This acquisition will significantly support Mastek in its Digital drive and will help in achieving and sustaining development of long term internal and core competencies.

The target companies provide end-to-end ecommerce services including strategy, creative design, implementation, and managed services.

Deal would be done at a price of Rs 12.5 crore. Closing of the acquisition is expected to complete in about 2-3 months from the date of execution of the share purchase agreement.

Post the announcement shares of Mastek shot up more than 10 per cent to hit an intra-day high of Rs 161.40 before cooling down to close at Rs 151, up 3.5 per cent on NSE.