July 13, 2024

Canarys Propels Growth Strategy with Acquisition Proposal Expanding Footprint in North American Market

Mumbai (Maharashtra) [India], April 26: Canarys Automations Limited (NSE – Canarys), with over 30 years of industry experience, offers expertise in digital transformation, providing solutions in Digitalization, Modernization, Cloudification, Automation, and Intelligence, announce a major milestone be venturing into inorganic growth strategy by signing of a non-binding agreement to acquire a controlling interest in a distinguished software services and consulting company based in North America.

With over two decades of excellence in the industry, the target company has established itself as a trusted partner, serving clients across various sectors including Banking, Financial Services, Insurance (BFSI), and Pharmaceuticals. This strategic move reflects Canarys’ commitment in accelerating growth in the North American market and expanding its portfolio of solutions to cater to the needs of Fortune 100 companies.

The proposed acquisition represents Canarys Automations Limited’s first foray into acquisitions and underscores its dedication to realizing ambitious growth targets. By combining the strengths and expertise of both entities, Canarys aims to create synergies that will drive innovation, enhance solutions and service delivery, and provide added value to customers. The transaction is subject to the completion of due diligence and the execution of definitive agreements. Canarys Automations Limited looks forward to leveraging this acquisition to strengthen its position in the market, seize new opportunities, and embark on an exciting journey of growth and success.

To finance this strategic acquisition, Canarys plans to utilize a combination of internal accruals, and debt. The company intends 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 slated for May 13, 2024, to secure shareholder approval for the proposed preferential issue.

Mr. Sheshadri Srinivas, Executive Director & CEO of Canarys Automations Limited said, “This strategic move marks a pivotal moment in our company’s history, showcasing our unwavering commitment to growth and innovation. The acquisition aligns seamlessly with our overarching vision of achieving 10X growth, underlining our dedication to delivering impactful solutions to our clients.

By strategically combining our strengths with those of the target company, we are poised to create synergies that will drive innovation, elevate service delivery standards, and ultimately, provide enhanced value to our customers. This acquisition represents not only our first step into acquisitions but also a bold move towards expanding our presence in the North American market and diversifying our solution portfolio.

I am confident that this acquisition will position Canarys for continued success and leadership in the dynamic global market.”

Canarys remains steadfast in its 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.

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