IRIS Business Services Limited has informed the Exchange about General Updates- Divestment of entire stake of IRIS Logix Solutions Private Limited to Sovos Compliance Limited.
IRIS · price
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IRIS Business Services has approved selling its GST Application Service Provider (ASP) business along with its 100% stake in subsidiary IRIS Logix Solutions to US-based global tax compliance major Sovos Compliance Limited for a total consideration of Rs. 151.24 crore. The deal works in steps: IRIS first buys the 48.99% minority stake in IRIS Logix for Rs. 0.50 crore, then transfers its GST ASP business as a slump sale to IRIS Logix for Rs. 140.57 crore, and finally sells the entire IRIS Logix equity to Sovos for Rs. 10.67 crore. The GST ASP business contributed Rs. 15.15 crore in revenue (~12.67% of standalone turnover) in FY25. The buyer, Sovos, serves over 1 lakh customers including half the Fortune 500. The transaction is expected to close by October 1, 2025, and requires shareholder approval as it qualifies as a material related-party transaction.
Shareholders are likely to view this positively as the company is exiting a non-core, capital-intensive segment at an attractive valuation to focus on higher-growth Suptech and Regtech businesses globally. The Rs. 151 crore cash inflow will strengthen the balance sheet, though the loss of ~13% of standalone revenue will need to be replaced by growth in core segments.