Logistics firm Delhivery announced on Tuesday that it would acquire Algorhythm Tech for a cash consideration of Rs 14.90 crore, which is subject to compliance with Sebi regulations.
According to a statement shared with National Stock Exchange, the board of directors approved the acquisition of Algorhythm Tech on Monday. Algorhythm Tech is a cloud-based and artificial intelligence-based platform for manufacturing, supplychain and sales optimisation.
Upon completion of the acquisition, Algorhythm Tech will become wholly-owned subsidiary of the company, according to the statement from Delhivery.
The statement also said Algorhythm Tech's supply chain software tools are relevant to Delhivery's supply chain services business -- both as a value added service to Delhivery's customers, and to drive cost optimisation in service delivery.
The statement mentioned that the company's cost of acquisition or the price at which the shares are acquired is Rs 14.90 crore. This could be also for certain other payments to outgoing management team members, it added. Algorhythm had a turnover of Rs 3.6 crore in fiscal 2021-22 (FY22).
In addition, Delhivery may provide inter-corporate loans to/ infuse additional capital in the company to meet business requirements and settle past arrears and other liabilities. According to the statement, the acquisition will be funded from the proceeds raised through the initial public offer.
Delhivery is an Indian logistics and supply chain company, based in Gurugram. It was founded in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati. The company has over 85 fulfillment centres, 24 automated sort centres, 70 hubs, over 7,500 partner centers, and over 3,000 direct delivery centres, as of 2021.
( With inputs from ANI )
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor