Datamatics to Demerge and Separately List its Subsidiary Lumina Datamatics

MUMBAI, December 17, 2018 /PRNewswire/ --

The Board of Directors of Datamatics Global Services Limited ('DGSL'), and Lumina Datamatics Limited ('Lumina') in their respective board meetings today, approved a proposal to merge the two Companies into DGSL. The merged Company would then be vertically split into two Companies, namely, Datamatics Global Services Ltd. and LDR E-Retail Ltd. Thus, the shareholders of DGSL will have an identical shareholding pattern in both DGSL and LDR E-Retail Ltd. The latter will be renamed as Lumina Datamatics Limited.

The scheme is subject to regulatory approvals and proposes an appointed date of April 1, 2019.

The board was of the view that the businesses of two companies serve completely different market segments and have different offerings. The de-merger will allow the managements of each Company to focus and pursue growth strategies tailored specific for the segments they serve. The de-merger will also give direct visibility of the opportunity and assets for both the companies which will further unlock value for the shareholders by way of separate listing.

DGSL is a Technology and BPM services company that builds intelligent solutions enabling data-driven businesses to digitally transform themselves through Robotics, Artificial Intelligence, Cloud, Mobility and Advanced Analytics.

Lumina is engaged in the business of providing e-retail and digital publishing services in content development, design and composition, content transformation, e-books and new media, rights and permissions, QA services, project management, consulting and information services, publishing and e-retail software development and implementation, digital assets management and storage, adaptive assessment system, site merchandising, market intelligence and e-commerce data publishing & e-retail solutions to clients. Lumina is already one of the 5 largest Companies in this field.

The consolidated income of DGSL for FY 17-18 was Rs.935 crores and FY19H1 was Rs.552 crores.
The consolidated income of Lumina for FY 17-18 was Rs.237 crores and FY19H1 was Rs.130 crores.
The consolidated income of DGSL (excluding Lumina) for FY 17-18 was Rs.698 crores and FY19H1 was Rs.423 crores.

Mr. Rahul Kanodia, Vice - Chairman & CEO, Datamatics said, "Both the businesses are witnessing steady growth and de-merger will further help us to bring focus, sharpen our future strategies and unlock value for all stakeholders."

Katalyst Advisors LLP, headed by Mr. Ketan Dalal is the transaction advisor to DGSL, Lumina and LDR.

About Datamatics Global Services 

Datamatics (BSE: 532528 | NSE: DATAMATICS) provides Intelligent Solutions for data driven businesses to increase productivity and enhance customer experience. The company's portfolio of service offerings spans across Information Technology Services, Business Process Management, Engineering Services and Big Data & Analytics all powered by Artificial Intelligence. It has established products in Robotics Process Automation, Advanced Analytics, Business Intelligence and Automated Fare Collection. Datamatics services over 450 customers globally across Banking & Financial Services, Insurance, Healthcare, Manufacturing, International Organizations and Media & Publishing. Headquartered in Mumbai, the Company has presence across 4 continents with major delivery centers in the USA, India and Philippines with an employee base of 10,000. To know more about Datamatics, visit http://www.datamatics.com.

About Lumina Datamatics  

Lumina Datamatics is a trusted partner to several companies in the global publishing and retail industries, addressing their needs in content, technology and commerce. As a strategic partner, Lumina Datamatics helps its clients improve their business competitiveness and achieve operational efficiency. The benefits delivered by its relevant solutions include reduced time to market for new products and services, increased efficiency in business processes, as well as deep reader and buyer insights. For publishers, Lumina Datamatics manages end-to-end publishing processes-from content creation till product delivery. Added to these are capabilities to generate feedback from readers and buyers. This is achieved mainly with the combination of deep domain expertise and innovative application of technology tools and platforms. For retailers, Lumina Datamatics provides a competitive edge to increase sales through advanced content solutions, business intelligence with content, and e-commerce technology platforms. Lumina Datamatics has a geographically diverse portfolio with a footprint across four continents-Americas, Asia, Australia and Europe. To know more about Lumina Datamatics, visit https://luminadatamatics.com/.

Safe Harbour 

Some of the statements in this update that are not historical facts are forward-looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry.

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