GAVS’ Middle East Business Acquired by Happiest Minds for $1.7 Million

Happiest Minds Technologies has announced the acquisition of GAVS Technologies’ Middle East business for $1.7 million in cash. The deal involves acquiring three entities including InnovazIT Technologies LLC (Dubai), GAVS Technologies LLC (Oman), and GAVS Technologies Saudi Arabia. 

The acquisition is expected to be completed by March 15, 2025, subject to regulatory approvals and filings with the Reserve Bank of India (RBI).

Business Impact and Expansion

With this acquisition, Happiest Minds aims to consolidate existing customer relationships, contracts, and delivery teams in the Middle East. The acquired entities primarily cater to large enterprises in the Banking, Financial Services, and Insurance (BFSI) sector, offering application development, maintenance, and infrastructure support services. 

The businesses being acquired generate an annual revenue of approximately $6.4 million.

No Related-Party Transaction

Happiest Minds has confirmed that this acquisition is not a related-party transaction, and neither the promoters nor the promoter group have any financial interest in the acquired companies. The company stated that this is aimed at transitioning important customer relationships and contracts.

Financial Overview

Happiest Minds has a market capitalisation of ₹10,956.93 crore. In its latest financial report, the company recorded a total revenue of ₹374.6 crore, while operating profit stood at ₹86.5 crore. The acquisition follows Happiest Minds’ strategy of expanding its business presence in the Middle East, particularly in the BFSI and IT services sectors.

After the announcement, Happiest Minds’ share price rose by 4.39% to ₹726.30 during intraday trade today,  on Monday. At 12:24 PM, the stock was trading at ₹718, showing a 3.21% increase. However, over the past six months, the company’s stock has declined by 10%, and over the last year, it has fallen by 17%.

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