Stock market today: Coforge share price dips over 7% despite THIS acquisition update

Coforge share price declined over 7% on Friday, extending its downward trend for the fourth consecutive session. Coforge shares fell as much as 7.43% to ₹6,625 apiece on the BSE.

Coforge on Friday announced the acquisition of 100% stake in Rythmos Inc. through its wholly owned subsidiary.

In March 2025, Coforge, through its wholly owned subsidiary, Coforge Inc., agreed to enter into a stock purchase agreement with Rythmos Inc. and its stockholders to acquire all of the outstanding shares of capital stock of Rythmos Inc.

“...in continuation to our announcement dated March 5, 2025 in relation to a stock purchase agreement between Coforge Inc., a wholly owned subsidiary of the Company and Rythmos Inc. (“Target Company”) and its stockholders (“Stock Purchase Agreement”), we would further like to inform that Coforge Inc. has acquired 100% of the outstanding shares of the Target Company from its stockholders in accordance with the Stock Purchase Agreement,” Coforge said in a regulatory filing on April 4.

Rythmos Inc. Acquisition

Coforge has now acquired 100% stake in Rythmos Inc. through its wholly owned subsidiary Coforge Inc., for $48.7 million. Rythmos belongs to the IT / ITes industry. The company had earlier announced that Coforge Inc. will discharge the consideration under the Stock Purchase Agreement by way of cash.

Rythmos transaction involved acquisition of 100% stake of the company by Coforge Inc., with an initial upfront purchase consideration of $ 30.0 million subject to further adjustments and completion of certain conditions precedent, in accordance with the Stock Purchase Agreement.

An additional earnout amount was payable to the stockholders of the Rythmos in two tranches based on the achievement or performance of certain revenue and EBITDA targets for CY 25 & CY 26, subject to maximum payout of $18.7 million, the company had said on March 5.

Coforge Stock Price Trend

Coforge's share price has declined by 7% over the past month and is down 30% year-to-date (YTD). However, the IT stock has gained 15% over the past year and has delivered multibagger returns of 547% over the last five years. Currently, Coforge shares are trading 34% below its 52-week high.

At 12:20 PM, Coforge shares were trading 6.15% lower at ₹6,716.80 apiece on the BSE.

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