Angelnews India

Today, on March 30, 2024, during their meeting, the Administration and Investment committee of the Board of Directors of Quess Corp Limited deliberated and sanctioned an additional procurement of equity shares in Heptagon Technologies Private Limited (“Heptagon”), a subsidiary entity. This decision results in the Company’s ownership in Heptagon rising from 60.67% to 100%, as outlined in a Share Purchase Agreement executed on March 30, 2024. Following this acquisition, Heptagon will transition into a fully-owned subsidiary of Quess Corp Limited.

The acquisition of Heptagon Technologies Private Limited represents a strategic move for Quess Corp Limited, aligning with its digital-first strategy. Heptagon, a specialist in niche software development encompassing digital consulting, transformation, and product engineering, boasts a substantial turnover of ₹31.75 crores as of March 31, 2023. With over 500 completed projects and a user base exceeding 70 million, Heptagon brings significant expertise and market presence to the table. This acquisition, conducted as a related party transaction but at arm’s length, will see Quess Corp Limited’s shareholding in Heptagon rise from 60.67% to a full 100%, rendering Heptagon a wholly-owned subsidiary.

The move is expected to enhance Quess’ digital revenue streams and overall margin profile. With no need for governmental or regulatory approvals, the acquisition is slated for completion within 15 days, involving a cash consideration not exceeding ₹1.5 crores for the purchase of 39.33% of Heptagon’s shares collectively held by its founders. Established in July 2015, Heptagon’s financial trajectory underscores its growth potential, with revenues reaching ₹31.76 crores in FY 2023, up from ₹27.66 crores in FY 2022 and ₹17.40 crores in FY 2021.

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