TVS Electronics will acquire the business and IP rights of GTID Solutions. TVS Electronics expects the transaction to be complete on or before October 31, 2022.
TVS Electronics on Monday executed a business transfer agreement with GTID Solutions Development to enter into the mobile POS software solutions and authentication solutions space, offering hardware along with required applications, digital payment solutions, cloud computing software solutions, etc. to segments like Retail, Banks, and Government.
As per the regulatory filing, TVS Electronics will acquire the business and IP rights of GTID Solutions.
The cost of acquisition will be to the tune of ₹2.25 crore.
Giving rationale to the agreement, TVS Electronics said, "With an established products network, the Company wish to acquire the business and IP rights of GTID Solutions Development Pvt Ltd to enter into mobile POS software solutions and authentication solutions space."
It added, "This will help us in offering hardware along with required applications, digital payment solutions, cloud computing software solutions etc. to segments like Retail, Banks, and Government."
TVS Electronics expects the transaction to be complete on or before October 31, 2022.
The transaction does not fall within the related party transaction.
On BSE, TVS Electronics closed at ₹253 apiece up by ₹14.10 or 5.90%. The company's market valuation is around ₹471.85 crore.
In Q1FY23, TVS Electronics posted a net profit of ₹3.80 crore compared to a loss of ₹49 lakh in Q1FY22. The company had posted a net profit of ₹4.49 crore in March 2022 quarter. Total revenue stood at ₹86.86 crore in Q1 of this fiscal against ₹54.46 crore in Q1FY22 and ₹88.86 crore in Q4FY22. Source
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