R Systems Acquires Novigo Solutions, Setting the Stage for a Global Agentic AI Powerhouse

WOWLY- Your AI Agent Apr 02, 2026 7 Views

In a strategic and transformative development for the digital product engineering sector, R Systems International Ltd, a global leader in digital innovation and AI-driven solutions, announced on August 21, 2025, the acquisition of 100% equity shares of Novigo Solutions Private Limited. This move heralds a new era of enhanced capabilities in product engineering, low-code/no-code development, and intelligent automation services for R Systems, marking a significant milestone in its growth trajectory.

Key Highlights of the Acquisition

Acquisition Date and Structure: The acquisition was approved during the Board meeting of R Systems held on August 21, 2025, and involves purchasing 100% equity shares of Novigo Solutions.
Financial Details: The upfront cash consideration for acquiring Novigo is INR 400 crore, with additional stock consideration linked to the future EBITDA performance of Novigo. This transaction is expected to be earnings per share (EPS) accretive for R Systems from the first year itself.
Business Growth and Scale: Novigo has demonstrated a robust 44% compound annual growth rate (CAGR) in revenue over the last three years, paired with a 25% EBITDA margin and strong free cash flow. The combined entity now commands a revenue of approximately INR 20,600 million ($240 million) and EBITDA of INR 3,800 million ($45 million).
Expansion and Market Presence: Alongside consolidating its leadership in digital product engineering, R Systems is expanding its footprint into high-growth regions such as the Middle East, and strengthening its delivery presence in Bangalore, Mangalore, and other Tier 2 Indian cities.
Strategic Synergies: The acquisition integrates Novigo’s exceptional automation capabilities, including its UiPath Diamond-tier practice and Microsoft Copilot Centre of Excellence, with R Systems’ OptimaAI Suite. This synergy positions the company at the forefront of the Agentic AI revolution, enabling seamless engineering, deployment, and management of enterprise-scale AI agent fleets under a unified governance platform.

Detailed Breakdown of the Acquisition

Background and Profile of Novigo Solutions

Novigo Solutions, incorporated on December 25, 2013, is a specialist in information technology services, offering cutting-edge digital and product engineering solutions. It has earned recognition for its expertise in low-code/no-code development and intelligent automation. Headquartered in Mangalore—a city increasingly touted as India’s Silicon Beach—Novigo serves clients in BFSI (Banking, Financial Services, and Insurance), Hi-Tech, Manufacturing, and Energy sectors. The company has established strong partnerships with technology leaders such as Microsoft, Snowflake, Databricks, UiPath, and OutSystems.

Financials indicate a significant upward trajectory, with Novigo’s revenue growing from INR 1,017.17 million in FY 2022-23 to an estimated INR 2,644.40 million in FY 2024-25 based on provisional financials. The company’s net worth as of March 31, 2025, stands at INR 1,191.54 million.

Strategic Rationale and Impact

The acquisition directly aligns with R Systems’ ambition to become a differentiated high-growth digital product engineering firm. By adding Novigo’s specialization in low-code/no-code automation and agentic AI capabilities, R Systems significantly strengthens its ability to serve evolving enterprise needs for autonomous, compliance-ready AI workflows.

Key benefits include:

Enhanced product engineering power across critical domains such as FinTech and Hi-Tech.
Development of an integrated AI platform capable of engineering to autonomous execution of enterprise AI agents.
Greater access and delivery capacity in rapidly growing geographies, particularly in the Middle East and Indian Tier 2 cities.
Joining forces with Novigo’s talented leadership team ensures continuity and growth acceleration.

Regulatory and Transaction Details

The acquisition is a straightforward commercial transaction without any related party involvement, executed at arm’s length. There are no major governmental approvals required beyond notifying the General Authority for Competition in Saudi Arabia under applicable laws. Completion is subject to customary closing conditions set forth in the Share Purchase Agreement dated August 21, 2025.

Statements from Leadership

Nitesh Bansal, CEO of R Systems, emphasized the transformative potential of this deal for both clients and investors, highlighting the strategic leap into the emerging Agentic AI market. Novigo’s CEO and CTO, Praveen Kalbhavi and Mohammed Hanif, respectively, underscored their commitment to accelerating deployment of agentic AI solutions powered by the combined entity’s technological strengths.

Forward-Looking Outlook

As enterprises globally increase IT budgets for AI-driven automation, this acquisition strategically positions R Systems to lead the market with a comprehensive, governed platform for AI agent management. The combination of two fast-growing, innovative companies is expected to drive sustained value creation, enabling customers to innovate rapidly and effectively in the era of intelligent automation.

Today’s announcement marks a pivotal step for R Systems International Ltd to harness next-generation AI and automation technologies at scale, cementing its standing as a global product engineering powerhouse.

Source: Company Press Release and Disclosure to the Stock Exchanges

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