Coforge Limited Expands Global Presence with Strategic Acquisitions of Rythmos Inc. and TMLabs Pty Ltd
Coforge Limited has announced the acquisition of two companies, Rythmos Inc. and TMLabs Pty Ltd., strengthening its global presence and expanding its expertise in data, cloud engineering, and the ServiceNow ecosystem. The official disclosure was made to the BSE Limited and the National Stock Exchange of India Limited on March 5, 2025, in accordance with Regulation 30 of the SEBI Listing Regulations.
Acquisition of Rythmos Inc.: Enhancing Data & Cloud Engineering Capabilities
Coforge, through its wholly-owned subsidiary Coforge Inc., has entered into an agreement to acquire 100% of the capital stock of Rythmos Inc. The transaction, referred to as the “Rythmos Transaction,” is expected to be completed by March 31, 2025, subject to the fulfillment of closing conditions outlined in the Stock Purchase Agreement.
Key Highlights of the Acquisition:
-
Industry Focus: IT / ITes
-
Turnover for CY 2024: $25.3 million (INR 2,204 million)
-
Acquisition Objective: Strengthen Coforge’s data practice and cloud engineering capabilities, with a specific focus on the airlines industry.
-
Acquisition Cost:
-
Initial upfront consideration: $30 million
-
Earnout potential: Up to $18.7 million (based on revenue and EBITDA targets for CY 2025 & CY 2026)
-
-
Mode of Payment: Cash
-
Regulatory Approvals: Not required
-
Headquarters & Operations: USA and India
-
Historical Turnover:
-
2022: $22.6 million
-
2023: $24.4 million
-
2024: $25.3 million
-
Rythmos Inc., incorporated on March 14, 2007, in the USA, is a leading provider of data and cloud services, offering deep industry expertise, particularly in the airline sector. With this acquisition, Coforge aims to significantly bolster its data-driven capabilities while expanding its reach in the USA and India.
Acquisition of TMLabs Pty Ltd: Strengthening the ServiceNow Ecosystem in Australia
Coforge, through its wholly-owned step-down subsidiary Coforge Technologies Australia Pty Ltd, has signed an agreement to acquire 100% of the capital stock of TMLabs Pty Ltd. This deal, referred to as the “TMLabs Transaction,” is also expected to be finalized by March 31, 2025, following the completion of closing conditions specified in the Share Sale Agreement.
Key Highlights of the Acquisition:
-
Industry Focus: IT / ITes
-
Turnover for FY 2024: A$ 11.0 million (INR 608 million)
-
Acquisition Objective: Strengthen Coforge’s expertise in the ServiceNow ecosystem, with a focus on modules such as Integrated Risk Management, Healthcare, and HR Service Delivery. The acquisition also supports growth in the Healthcare vertical and Australian market.
-
Acquisition Cost:
-
Initial upfront consideration: A$ 20 million
-
Additional earnout potential: Based on revenue and EBITDA targets for FY 2026 & FY 2027
-
-
Mode of Payment: Cash
-
Regulatory Approvals: FIRB approval obtained under Section 75 of the Foreign Acquisitions and Takeovers Act 1975 (Cth) from The Treasury, Australian Government, on February 6, 2025.
-
Headquarters & Operations: Australia
-
Historical Turnover:
-
FY 2022: A$ 7.0 million
-
FY 2023: A$ 10.6 million
-
FY 2024: A$ 11.0 million
-
Founded on November 28, 2013, in Australia, TMLabs Pty Ltd specializes in implementation services for the ServiceNow platform, with a strong presence in the Australian market. The acquisition will enable Coforge to enhance its ServiceNow expertise and accelerate its growth in key industry segments.
Strategic Impact of the Acquisitions
These acquisitions align with Coforge’s long-term vision of expanding its technological capabilities and global footprint. The acquisition of Rythmos Inc. will reinforce Coforge’s data and cloud engineering strengths while deepening its industry knowledge in the airline sector. Simultaneously, the TMLabs Pty Ltd acquisition will strengthen Coforge’s ServiceNow ecosystem capabilities, particularly in Healthcare and Risk Management, ensuring a stronger foothold in the Australian market.
Both acquisitions are set to be completed by March 31, 2025, and will be fully funded through cash consideration. With these strategic moves, Coforge continues to position itself as a global technology leader, driving innovation and delivering enhanced value to clients across industries.
