Zaggle Prepaid Ocean Services to Expand Portfolio with 98.32% Stake in Span Across IT Solutions

Zaggle Prepaid Ocean Services Limited announced on September 25, 2024, that its Board of Directors has approved the acquisition of a significant equity stake in Span Across IT Solutions Private Limited. 

The company will acquire 10,66,314 equity shares, each with a face value of ₹10, at a price of ₹300.80 per share. This acquisition represents a 98.32% stake in Span Across, which will subsequently become a subsidiary of Zaggle following the completion of necessary procedural requirements.

Span Across IT Solutions has an authorised share capital of ₹2 crore, divided into 20,00,000 equity shares. For the fiscal year 2023-24, the company reported a turnover of ₹4.73 crore, indicating a stable financial performance. The primary objective behind this acquisition is to enable Zaggle to enter a new segment focused on employee-related business solutions, thereby diversifying its portfolio and enhancing growth opportunities.

By acquiring a majority stake in Span Across, Zaggle aims to achieve inorganic growth, which is expected to bring significant benefits to all stakeholders, including shareholders. The acquisition is anticipated to facilitate the integration of Span Across’s services with Zaggle’s existing offerings, promoting innovation and expanding the company’s market reach.

The indicative time frame for the completion of this acquisition is set at 45 days from the date of the Board’s approval. The total cost of the acquisition amounts to approximately ₹320.3 crore, considering the premium of ₹290.80 per equity share. This strategic move underscores Zaggle’s commitment to enhancing its operational capabilities and expanding its business horizons in the competitive IT services landscape.

As Zaggle Prepaid Ocean Services prepares to finalise this acquisition, it reinforces its position in the industry and demonstrates its proactive approach to growth and diversification. This acquisition marks a significant milestone in Zaggle’s journey toward becoming a more comprehensive player in the technology and employee-related services sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.