R Systems acquires Mangaluru-based Novigo Solutions

R Systems International Ltd, a global product engineering and digital solutions provider, has announced that it has entered into a definitive agreement to acquire Mangaluru-based Novigo Solutions, a specialist in low-code/no-code (LCNC) development and intelligent-automation services.

A media statement said the upfront cash consideration for the transaction is ₹400 crore, with an additional stock consideration linked to future EBITDA achievement. The acquisition will be EPS accretive for R Systems since year 1.

Novigo’s management team will continue to be a part of the combined platform and drive growth.

Barclays acted as Novigo’s exclusive financial advisor. The acquisition is expected to close in the coming weeks, subject to customary closing conditions.

The statement said the acquisition creates a global digital product engineering services powerhouse with ₹20,600 million (around $240 million) revenue and ₹3,800 million (around $45 million) EBITDA, offering engineering, deployment, and management of enterprise-scale fleets of AI agents under a single, governed platform.

Novigo has been growing strongly and delivered 44 per cent revenue CAGR over the last three years with 25 per cent EBITDA margin and healthy free cash flow.

The acquisition integrates R Systems’ OptimaAI Suite with Novigo’s UiPath Diamond-tier automation practice and Microsoft Copilot Centre of Excellence. The acquisition helps R Systems expand its offerings in the fast-growing Middle East region and gain delivery presence in Bengaluru and tier 2 cities such as Mangaluru, it said.

Quoting Nitesh Bansal, CEO and Managing Director of R Systems, the statement said: “This is a pivotal moment for R Systems, our clients, and our investors.

As enterprises move from pilots to production-grade AI agents which are governed by robust orchestration and compliance frameworks, the acquisition of Novigo Solutions acts as an accelerator in our journey to lead the Agentic AI revolution.

By integrating Novigo’s automation depth into our OptimaAI portfolio, we can now take customers from model engineering to autonomous execution under one roof.

It’s not just about adding scale; it is about adding synergistic, high-margin capabilities that translate into stronger outcomes for our clients. We are thrilled to welcome the highly talented Novigo team to the R Systems family.”

Praveen Kalbhavi, CEO of Novigo Solutions, and Mohammed Hanif, CTO of Novigo Solutions, said: “We have built a world-class practice in making businesses faster and smarter through lowcode platforms and intelligent automation. Joining R Systems accelerates our mission to deploy agentic AI and automation tools at scale. Now, supercharged by R Systems’ OptimaAI Suite, our UiPath and Microsoft agentic workforce can be deployed to solve our clients’ most complex problems. Our high-quality talent across Mangaluru, emerging as India’s Silicon Beach, and all our locations will complement the global engineering strengths of R Systems. We look forward to growing the business further with R Systems.”

Published on August 22, 2025