Coforge tanks 10% following acquisition of Cigniti Technologies, declares 95% jump in Q4 profits
Summary
Shares of Coforge tanked 10% on Friday following the firm’s announcement of the acquisition of Cigniti Technologies which appears to have disappointed the street. Coforge said it believes the acquisition of Cigniti will ensure the firm’s operating margins improve by 150-200 basis points by FY27 itself. The firm believes it will help it realise its objective of scaling up its presence across the southwest, mid-west, and western US markets. Furthermore, Coforge believes the acquisition will address the significant opportunities that the proliferation of artificial intelligence (AI) is creating for specialised assurance services. Sudhir Singh, chief executive officer at Coforge said The $400 million TCV deal signed in Q4, the 56% YoY increase in order intake, and the 102 bps sequential margin improvement in Q4 helped the company deliver robust growth in FY25 with expanded margins.
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