On August 22, 2025, R Systems
International Limited, backed by Blackstone, announced the acquisition of
Mangaluru-based Novigo Solutions in a strategic move that has further elevated
the coastal region's prominence in India’s technology M&A landscape. The
deal, which involves an upfront cash payment of USD 48 million, includes an
additional stock-based contingent payout tied to future performance
metrics—bringing the total deal value to an estimated USD 115 million.
This acquisition marks the third major
deal involving a Mangaluru-headquartered IT company in recent years, placing
the region often dubbed “India’s Silicon Beach” firmly on the national tech
map. Previous notable acquisitions include TechnoPro Holdings’ 2021 takeover of
Udupi-based Robosoft Technologies for approximately USD 97 million and NTT
DATA’s acquisition of Niveus Solutions in late 2024.
Novigo Solutions, founded in 2013 by
Praveen Kumar Kalbhavi, Mohammed Hanif, Mohammed Jarood, and Shihab Kalandar,
specializes in low-code/no-code development and intelligent automation across
banking, technology, and manufacturing verticals. The company posted revenue of
USD 32 million in FY 2024–25, with an EBITDA margin of 25% and a workforce of
around 1,000 employees.
The strategic rationale for the
acquisition is multifold. R Systems aims to integrate Novigo’s automation
strengths—especially in UiPath automation and intelligent workflows—with its
own OptimaAI Suite and Microsoft Copilot capabilities. This integration
positions the combined entity at the forefront of “Agentic AI,” offering
enterprises governed, autonomous AI agent networks under a unified platform.
Financially, the deal is expected to be
accretive from the first year. R Systems and Novigo together now generate
combined revenues of approximately USD 248 million and EBITDA of USD 46
million.
Market reaction was immediate and
robust: R Systems’ shares surged between 16% and 17% following the
announcement. One report noted a 17% intraday rally, catapulting the company’s
market capitalization by USD 90 million.
Stakeholders and
industry insiders are celebrating the deal as a validation of the
Mangaluru–Udupi region’s growing potential. Business leaders in the region
highlighted that the acquisition has given confidence that the coastal belt can
emerge as a serious contender in India’s technology ecosystem—not just building
companies for acquisition purposes, but creating globally recognized brands
that rival Bengaluru and other established hubs.