Hyderabad-based EPCOGEN is a niche solutions provider focussed on engineering design and solutions for energy space. It is serving conventional, low carbon and renewable energy industries in engineering supply chain management, construction CMMS, asset management, laser scanning & 3D modelling. The company recorded sales revenue of Rs 12 crore in financial year 2023.

The acquisition would offer AXISCADES a deeper presence in energy vertical both with competency and array of customers. It would enhance the company's presence in end-to-end project execution, complex project engineering and design and contribution to new age energy solutions. It would raise its ability to cross sell capabilities between existing O&G customers and industrial product customers and would also grant access to Middle East and North American energy markets.

"The acquisition will be the next steppingstone in energy vertical for the Company,” AXISCADES said in a statement.

The cost of the said acquisition is Rs 26.25 crore plus 3 years earnout of Rs 7 crore based on performance ending FY26. The company expects to conclude the acquisition by December 2023, subject to successful closure of closing conditions, regulatory and lender approvals, if any.

AXISCADES Technologies is a leading end to end engineering and technology solutions provider, catering to aerospace, defence, heavy engineering, automotive, energy, medical & healthcare sectors, serving global OEMs.

On a consolidated basis, the company reported net profit of Rs 5.61 crore in Q1 June 2023 as against net loss of Rs 31.80 crore in Q1 June 2022. Net sales rose 16.56% YoY to Rs 213.64 crore in Q1 June 2023.

The scrip rose 0.42% to currently trade at Rs 559 on the BSE.