Datamatics Acquires TNQ Tech to Strengthen Digital Publishing Services
Datamatics Global Services Ltd has announced a significant step forward in its digital publishing and technology services with the acquisition of TNQ Tech Private Limited. Here are the details of this strategic move:
Acquisition Announcement:
On December 9, 2024, Datamatics revealed its plan to acquire 100% ownership of TNQ Tech Private Limited (TNQTech). The acquisition will be executed in two phases, with Lumina Datamatics Limited, a Datamatics subsidiary, eventually holding all shares of TNQTech.About TNQ Tech:
TNQTech, headquartered in Chennai, specializes in digital publishing technology and services, including pre-press publishing, design, and software development. Its clientele includes leading global publishers of scientific, technical, and medical journals and books. The company is recognized for its innovation, holding multiple patents for its cutting-edge products.Transaction Details:
- This acquisition is not a related party transaction, as Datamatics’ promoters or group companies have no stake in TNQTech.
- No governmental or regulatory approvals are required for the transaction.
- The acquisition will be completed in two tranches:
- First Tranche: 80% of shares will be acquired by December 31, 2024, for ₹336 crores.
- Second Tranche: The remaining 20% will be acquired by July 31, 2026, with the payment amount determined by TNQTech’s financials and other criteria.
- The entire acquisition will be financed through cash considerations.
Strategic Impact:
The acquisition positions Datamatics as a leading service provider in digital content, enhancing its workforce to over 6,500 employees globally. The collaboration is expected to create a stronger portfolio of AI-enabled technologies and products, expanding Datamatics’ reach in India, Europe, and North America.TNQTech’s Performance:
TNQTech recorded a turnover of ₹289.49 crores from October 2023 to September 2024. The company was incorporated on March 10, 2023, following a demerger from TNQ Technologies Pvt Ltd, effective October 1, 2023.
With this acquisition, Datamatics aims to solidify its leadership in digital publishing, leveraging TNQTech’s innovative solutions and expertise.
