Accel Limited announced that they have acquired the IT Services Business comprising IT Infrastructure Management Services business of Computer Factory India Private limited (CFIL) on a going concern basis.
After this transaction, all the existing businesses of Computer Factory will be run under Accel Limited, as Accel IT Services. Earlier, on January 1, 2020, Accel Limited had acquired Computer Factory India Private Limited in an all-cash deal, thereby making it a wholly-owned subsidiary of Accel Limited.
Computer Factory India Private Limited was set up in 1989 in Chennai as a systems and services company with operations in Chennai and Bangalore and is a leading player in IT infrastructure services.
As CFIL's IT Services business along with Accel Limited's IT Services business will bring synergies, the Board has approved the purchase of the IT Services business of Computer Factory India Private Limited, effective from April 1 2020, on a slump sale basis, company said in a regulatory filing on Tuesday.
The transfer of business has been done in such a way that the entire business along with its assets, customer base, contracts and employees will be transferred to Accel Limited as a going concern basis. The new entity will be known as Accel IT Services, which will be a division of Accel Limited.
"This acquisition will help Accel Limited in its next phase of growth and will strengthen the company's robust service portfolio developed over thirty years. The strong service capabilities of CFIL will complement Accel’s own service offerings and will offer more value for its customers,” N. R. Panicker, Founder, Chairman and Managing Director Accel Limited, said.
At around 9.52 am, Accel was trading at Rs14.17 per piece up Rs0.53 or 3.89% on the BSE.