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R Systems International Limited, a Blackstone portfolio company and global leader in digital product engineering, announced on August 21, 2025, its acquisition of Novigo Solutions, a Mangaluru-based specialist in low-code/no-code (LCNC) development and intelligent automation. The INR 400 crore deal, with additional stock consideration tied to future EBITDA, creates a digital engineering powerhouse with INR 20,600M (~$240M) in revenue and INR 3,800M (~$45M) in EBITDA, positioning R Systems as a leader in agentic AI and enterprise automation.
Acquisition Details: R Systems acquires Novigo for INR 400 cr, EPS-accretive from year one.
Financial Impact: Combined entity achieves $240M revenue, $45M EBITDA.
Novigo’s Growth: 44% revenue CAGR over three years, 25% EBITDA margin.
Strategic Focus: Enhances R Systems’ OptimaAI Suite with Novigo’s UiPath and Microsoft expertise.
Geographic Expansion: Strengthens presence in Middle East and Tier 2 cities like Mangaluru.
Leadership Continuity: Novigo’s management to drive growth within R Systems.
The acquisition integrates R Systems’ OptimaAI Suite with Novigo’s UiPath Diamond-tier automation practice and Microsoft Copilot Centre of Excellence, enabling end-to-end AI agent engineering, deployment, and management. “This is a pivotal moment for R Systems, our clients, and our investors,” said Nitesh Bansal, CEO of R Systems. “By integrating Novigo’s automation depth into our OptimaAI portfolio, we can now take customers from model engineering to autonomous execution under one roof.” This positions R Systems to lead the agentic AI market, addressing enterprises’ shift toward autonomous, compliance-ready AI workflows.
Novigo, founded by Praveen Kalbhavi, Mohammed Hanif, and others, has delivered a 44% revenue CAGR over the past three years, with a 25% EBITDA margin. “We have built a world-class practice in making businesses faster and smarter through low-code platforms and intelligent automation,” said Kalbhavi and Hanif, CEO and CTO of Novigo. Their expertise, combined with R Systems’ global reach, enhances service offerings in the Middle East and establishes a delivery presence in Bengaluru and Mangaluru, dubbed India’s “Silicon Beach.”
The deal, valued at approximately INR 950 crore per industry sources, follows a trend of high-value acquisitions in Mangaluru, including NTT Data’s purchase of Niveus Solutions and TechnoPro’s acquisition of Robosoft Technologies. R Systems’ stock surged 11-17% post-announcement, trading at INR 474.50 on August 22, 2025, reflecting positive market sentiment. The acquisition is expected to close in weeks, subject to customary conditions, with Barclays as Novigo’s financial advisor.
This acquisition aligns with R Systems’ strategy to build a high-growth, differentiated digital engineering firm. By combining Novigo’s 1,000-strong workforce and automation expertise with R Systems’ global infrastructure, the company is poised to deliver innovative, high-margin solutions. Posts on X highlight the deal’s potential to strengthen R Systems’ capital allocation and market leadership in agentic AI.
R Systems’ acquisition of Novigo Solutions marks a transformative step in its journey to lead the agentic AI revolution. By integrating advanced automation and low-code capabilities, R Systems enhances its global footprint and delivers unparalleled value to clients navigating the future of intelligent enterprises.
R Systems is a global product engineering and digital solutions provider. We combine complex engineering, Data & AI, cloud-native capabilities with deep domain understanding to design and build innovative products for Tech, SaaS platforms and enterprises across industry verticals. We leverage the power of Automation and Agentic AI to transform value chains to boost productivity and deliver differentiated customer experiences. With a culture of co-creation and an extensive partner ecosystem, we help customers navigate market shifts and drive sustained strategic growth.
Novigo is a digital-native company with expertise in end-to-end IT solutions such as product engineering, low-code/no-code (LCNC) development and intelligent automation services. We enable enterprises across BFSI, Hi-Tech, Manufacturing, and Energy sectors to accelerate their digital transformation. Our solutions are powered by advanced engineering capabilities and a strong ecosystem of partners, including Microsoft, Snowflake, Databricks, UiPath and OutSystems. We are headquartered in Mangalore, increasingly recognized as India’s Silicon Beach, and have high-quality talent across all our locations.
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