New Delhi, April 6 -- Software-as-a-service company Zaggle Prepaid Ocean Services Ltd is not moving ahead with its plan to acquire a majority stake in Hyderabad-based enterprise software company EffiaSoft Pvt Ltd.
The listed company said last year in March that it is planning to buy a 45.3% stake in EffiaSoft from existing shareholders Koushik Shee and Krishna Rao Akula for Rs 36.7 crore (around $4 million) and, through a separate transaction, an additional 5.67% stake from the same shareholders for Rs 4.6 crore in cash or stock.
At the time, Zaggle had said that the acquisition would help enhance its portfolio of offerings. EffiaSoft, founded in 2012 by Shee, is a product development and engineering company that offers enterprise software solutions, with its flagship product JustBilling.
Zaggle said that it had reassessed the strategic need for the proposed acquisition and decided not to proceed with it, according to a filing with a stock exchange on Friday.
Until last year, Mumbai-based Zaggle Prepaid Ocean Services had been on an acquisition spree since it listed on bourses in late 2023. The company was looking to make acquisitions in merchant card software, FASTag and account receivable segments.
In September 2024, the company acquired a 98.3% stake in Span Across IT Solutions for Rs 32 crore to help enter a new segment of employee related businesses. Additionally, the company acquired a 26% stake in digital payments infrastructure company Mobileware Technologies. Subsequently, the company increased its stake in Mobileware Technologies to 38.3%. Last June, it signed a deal to buy spend-management startup Dice Enterprises and, in December, it completed the acquisition of Rio Money, a fintech company specialising in consumer credit cards and UPI based payment solutions.
Published by HT Digital Content Services with permission from VC Circle.