Logistics firm Delhivery to acquire Algorithm Tech for Rs 14.9 crore

new Delhi:

Logistics firm Delhivery today announced that it will acquire Algorithm Tech for a cash consideration of Rs 14.90 crore, subject to compliance with SEBI regulations.

According to a statement shared with the National Stock Exchange, the board of directors on Monday approved the acquisition of Algorithm Tech. Algorhythm Tech is a cloud-based and artificial intelligence-based platform for manufacturing, supply chain and sales optimization.

Upon completion of the acquisition, Algorithm Tech will become a wholly owned subsidiary of the company, according to Delhivery’s statement.

The statement also noted that Algorithm Tech’s supply chain software tools are relevant to Delhivery’s supply chain services business – both as a value-added service for Delhivery’s customers and to drive cost optimization in service delivery.

The statement mentioned that the cost of acquisition of the company or the price at which the shares have been acquired is Rs 14.90 crore. It could also be for some other payments to the members of the outgoing management team. Algorithm had a turnover of Rs 3.6 crore in the financial year 2021-22 (FY22).

In addition, Delhivery can provide inter-corporate loans to meet business requirements and to infuse additional capital into the company to settle past dues and other liabilities. According to the statement, the acquisition will be funded from the proceeds raised through the initial public offering.

Delhivery is an Indian logistics and supply chain company, based in Gurugram. It was founded in 2011 by Sahil Baruah, Mohit Tandon, Bhavesh Mangalani, Suraj Saharan and Kapil Bharti. By 2021, the company will have more than 85 fulfillment centers, 24 automated sort centers, 70 hubs, more than 7,500 partner centers, and more than 3,000 direct distribution centers.

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