R Systems to acquire Novigo Solutions, expands AI-led product engineering

R Systems, a digital product engineering organisation backed by Blackstone, has announced that it has entered into a definitive agreement to acquireNovigo Solutions, a specialist in low-code/no-code (LCNC) development and intelligent automation services.

The acquisition will create a global digital product engineering services platform with revenue of approximately INR 20,600 million (~USD 240 million) and EBITDA of INR 3,800 million (~USD 45 million). The combined company will focus on the engineering, deployment and management of enterprise-scale fleets of AI agents within a governed framework.

Transaction details

The deal includes an upfront cash consideration of INR 400 crore, with additional stock consideration linked to Novigo’s future EBITDA performance. The acquisition is expected to be EPS accretive for R Systems from the first year.

Novigo has reported strong growth, achieving a 44% revenue CAGR over the past three years, with a 25% EBITDA margin and healthy free cash flow. Its operations will add delivery presence in Bangalore and Tier 2 cities such as Mangalore, alongside strengthening R Systems’ offerings in the Middle East.

Strategic impact

By combining R Systems’ OptimaAI Suite with Novigo’s UiPath Diamond-tier automation practice and Microsoft Copilot Centre of Excellence, the integrated entity aims to position itself at the forefront of designing, orchestrating and managing intelligent, compliance-ready AI workflows.

The acquisition aligns with shifting enterprise IT budgets towards autonomous AI-driven operations, giving R Systems a stronger foothold in product engineering and full-stack AI-led services.

Leadership commentary

Nitesh Bansal, CEO & Managing Director, R Systems, said the move marks a critical step in strengthening the company’s AI portfolio:

“As enterprises move from pilots to production-grade AI agents governed by robust orchestration and compliance frameworks, the acquisition of Novigo Solutions acts as an accelerator in our journey to lead the Agentic AI revolution. By integrating Novigo’s automation depth into our OptimaAI portfolio, we can now take customers from model engineering to autonomous execution under one roof. It’s not just about scale, but about adding synergistic, high-margin capabilities that drive stronger outcomes for clients.”

Praveen Kalbhavi, CEO, and Mohammed Hanif, CTO, Novigo Solutions, expressed confidence in the integration:

“We have built a strong practice in making businesses faster and smarter through low-code platforms and intelligent automation. Joining R Systems accelerates our mission to deploy agentic AI and automation tools at scale. Supported by R Systems’ OptimaAI Suite, our UiPath and Microsoft agentic workforce can now be deployed to address complex client challenges. Our talent base across Mangalore and other centres will complement the global engineering strength of R Systems.”

Future Outlook

Novigo’s management team will continue as part of the combined entity to drive future growth. The acquisition strengthens R Systems’ strategy to build a differentiated, high-growth digital engineering firm with capabilities spanning LCNC, automation, and full-stack AI deployment.

The transaction, with Barclays acting as Novigo’s exclusive financial advisor, is expected to close in the coming weeks, subject to customary approvals.

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