Mastek gains on acquisition announcement of AI company

Tanushree Jaiswal 20th July 2023 - 07:07 pm

Mastek Limited, a leading digital engineering and cloud transformation company based in Ahmedabad, has made a significant move to expand its capabilities in data engineering, cloud services, and Generative AI by acquiring US-based data services firm BizAnalytica LLC through its wholly-owned subsidiary, Mastek Inc.

The acquisition was completed for an upfront consideration of $16.72 million (approximately ₹140 crores) with the potential for an additional earn-out payment of up to $24 million based on specific performance targets.

BizAnalytica is known for its end-to-end data, cloud, and modernization solutions, serving clients like Snowflake, Databricks, and Amazon Web Services. The acquisition is expected to enhance Mastek's opportunities in the booming market of data analytics, cloud services, and Generative AI.

Mastek Q1 Results: Key Highlights (Consolidated, QoQ)

Revenue up 2.26% at ₹725.25 crore
EBIT up 1.29% at ₹107.29 crore
EBIT margin down 14 BPS at 14.79%
Net profit down 3.41% at ₹70.09 crore

The company secured 22 new clients during the April-June quarter, despite a sequential decrease of 6% in its active client base, which now stands at 436. Nevertheless, Mastek's order backlog, which includes deals won but not yet realized, saw a year-on-year surge of 16%, reaching an impressive ₹1,763 crore, even though it declined by 1.7% quarter-on-quarter.

In addition to the acquisition, Mastek appointed Umang Nahata as an additional director on its board, subject to approval by the board members. Umang Nahata previously led Evosys, a company that Mastek acquired in 2020, further strengthening the company's leadership and expertise.

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Tanushree Jaiswal

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