Latent View Analytics Ltd shares gained nearly 7% on Thursday, March 28, after the company's board approved the acquisition of 100% stake in the business transformation services provider Decision Point Private Limited.
The company’s board of directors at the meeting held on March 28 approved the strategic investment for the acquisition of up to 100% total paid-up equity share capital of Decision Point Private Ltd in multiple tranches, Latent View said in a filing to the stock exchanges.
Decision Point is a global analytics company that offers artificial intelligence-led revenue growth management (RGM) solutions for consumer packaged goods (CPG) brands, and has more than 300 employees across the world.
The acquisition of Decision Point would provide Latent View Analytics with an access to RGM capabilities, along with scaling up the company’s CPG vertical and opening up avenues and access to new clients and geographies for Latent View.
In a conversation with CNBC-TV18, Rajan Sethuraman, Chief Executive Officer, Latent View Analytics, said, "Decision Point has grown fairly rapidly in the last three years since they started focusing on opportunities in the Latam market, upwards of 50-60%. They operate on a calendar year principal and this year has been a little slower because of the general market conditions, but otherwise, they have been growing at a fairly rapid clip. We have already indicated that they will be a EBITDA accretive for us from day one. Their current EBITDA is at 28 to 30% level. The EPS we will be able to comment better once we wrap up this quarter and also take into account, intangibles and other aspects."
Latent View will complete the acquisition of 70% equity share capital on a fully diluted basis within 90 days of executing the transaction documents. The cost for acquiring this portion stands at $39.1 million (approximately ₹326 crore).
The remaining 30% of the outstanding equity share capital will be completed on a fully diluted basis in either one or multiple tranches before June 30, 2026. The cost for the acquisition of 30% equity share capital will be based on the valuation principles, the company informed the stock exchanges.
The consideration will be on a cash-free and debt free basis and subject to working capital adjustments, Latent View Analytics stated in an exchange filing on Thursday.
Shares of Latent View Analytics were trading 1.99% higher at ₹470.95 apiece on the BSE at 1:48 pm.
First Published: Mar 28, 2024 2:26 PM IST
