IRIS Business Services Limited has informed the Exchange regarding a press release dated July 02, 2025, titled "IRIS BUSINESS ANNOUNCES AGREEMENT TO DIVEST TAX TECHNOLOGY (GST) ASP BUSINESS".
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IRIS Business Services has signed a definitive agreement to sell its Tax Technology (GST) ASP business to US-based Sovos, a global tax compliance company, for a total transaction value of INR 1,512.4 million (approximately INR 151 crore). The deal involves the transfer of the GST ASP products, associated customers, and employees, who will all transition to Sovos after the deal closes. The divestiture is part of IRIS' strategy to simplify its business portfolio and sharpen focus on the global RegTech market, where the company sees strong growth potential. Proceeds from the sale will provide non-dilutive capital to fund growth in IRIS' core RegTech and other business lines, without raising new equity. The transaction is expected to close in August 2025, subject to shareholder approval and customary closing conditions.
This is a meaningful divestment (~INR 151 crore) that brings in cash without diluting shareholders, allowing IRIS to refocus on its higher-growth RegTech core. Shareholders will need to approve the deal, and the stock could see short-term movement on the news depending on how the market views the valuation and strategic direction.