Investment: Canarys embarks on inorganic growth strategy in North America

Bengaluru company resolved to achieve ambitious growth targets

Bengaluru-headquartered Canarys Automations Limited (NSE – Canarys) is set to embark on an inorganic growth strategy by entering into a non-binding agreement to acquire a controlling interest in a distinguished software services and consulting company based in North America.

Bringing over 20 years of industry excellence to the table, the target company has carved a niche as a trusted partner, serving esteemed clients across sectors including Banking, Financial Services, Insurance (BFSI) and Pharmaceuticals.

“This strategic move underscores Canarys’ unwavering commitment to accelerating growth in the North American market and expanding its portfolio of solutions to cater to Fortune 100 companies,” said the NSE-listed group with over three decades of industry experience in digital transformation.

This proposed acquisition marks Canarys Automations Limited’s inaugural venture into acquisitions, highlighting its resolve to achieve ambitious growth targets.

By amalgamating the strengths and expertise of both entities, Canarys aims to foster synergies that will fuel innovation, elevate solution and service delivery standards, and offer enhanced value to customers.

The completion of the transaction is contingent upon due diligence and the execution of definitive agreements. Canarys Automations Limited eagerly anticipates leveraging this acquisition to fortify its market presence, capitalize on new opportunities, and embark on an exciting journey of growth and success.

To facilitate this strategic acquisition, Canarys intends to utilize a blend of internal accruals and debt. The company plans to issue up to 25,60,973 convertible warrants priced at Rs.41/- each, with warrant holders having the option to convert them into 1 Equity Share at a premium of Rs.39/- per share within 18 months, aiming to raise funds of up to Rs.10.49 Cr/-.

An Extraordinary General Meeting is scheduled for 13 May 2024, to secure shareholder approval for the proposed preferential issue, the company said in a release on 30 Apr 2024.

Canarys reaffirms its unwavering commitment to delivering value to its shareholders and stakeholders. This strategic move underscores the company’s dedication to seizing growth opportunities in the dynamic global market landscape.

With a team of over 350 technology professionals, the company specializes in facilitating digital transformation for businesses through its software solutions in Digitalization, Modernization, Cloudification, Automation, and Intelligence. Fiinews.com