Blackstone Portfolio Company R Systems Acquires Novigo Solutions to Strengthen Product Engineering and Agentic-AI Capabilities

Blackstone portfolio company R Systems has acquired Novigo Solutions to strengthen its product engineering and full-stack agentic-AI capabilities. The acquisition creates a global digital product engineering services powerhouse with INR 20,600M (~$240M) revenue and INR 3,800M (~$45M) EBITDA. Novigo has been growing strongly with 44% revenue CAGR over the last three years and 25% EBITDA margin. The upfront cash consideration for the transaction is INR 400 cr, with an additional stock consideration linked to future EBITDA achievement.

R Systems International Limited, a global leader in digital product engineering, has announced the acquisition of Novigo Solutions, a specialist in low-code/no-code (LCNC) development and intelligent-automation services. The strategic acquisition aims to strengthen R Systems' product engineering and full-stack agentic-AI capabilities, creating a global digital product engineering services powerhouse [1].

The acquisition is expected to close in the coming weeks, subject to customary closing conditions. The upfront cash consideration for the transaction is INR 400 crore (approximately $240 million USD), with an additional stock consideration linked to future EBITDA achievement. This move positions R Systems well to address the evolving market landscape, as enterprises reallocate IT budgets towards autonomous, compliance-ready AI workflows [1].

R Systems' OptimaAI Suite will be integrated with Novigo's UiPath Diamond-tier automation practice and Microsoft Copilot Centre of Excellence, positioning the combined entity as a leader uniquely equipped to design, orchestrate, and operate the intelligent enterprises of the future. The acquisition also helps R Systems expand its offerings in the fast-growing Middle East region and gain delivery presence in Bangalore and Tier 2 cities [1].

Novigo Solutions has been growing strongly, delivering a 44% revenue CAGR over the last three years with a 25% EBITDA margin and healthy free cash flow. The acquisition is expected to be EPS accretive for R Systems since year 1, reflecting the synergies and growth opportunities created by the integration [1].

References:
[1] https://finance.yahoo.com/news/blackstone-portfolio-company-r-systems-164100490.html