Shares of R Systems International rose more than 2% on June 7 after the digital product engineering company announced it had signed a definitive agreement to acquire Velotio. Shares of the company were up 1.3% at Rs 340 on the BSE at 10:23 am. The company’s stock has soared 18% in a week and nearly 50% in the past year. Over the past three years, the stock has risen 245%.

Through the acquisition, Kalpak Shah, Velotio’s co-founder and CEO, and Chirag Jog, Velotio’s co-founder and CTO, along with the rest of the team, will work with R Systems to help scale Velotio’s business, grow its engineering capabilities and accelerating its growth, the company said in a regulatory filing.

Velotio combines complex engineering, data expertise, cloud-native and design capabilities to build innovative products for clients worldwide, including NASDAQ-listed and high-growth companies.

Net sales rose 18% year-on-year to Rs 404.07 crore in the quarter ended March 2023, while quarterly net profit jumped 21% to Rs 35.84 crore.

EBITDA grew 27% YoY to Rs 59.51 crore in March 2023. Meanwhile, R Systems’ EPS increased from Rs 2.51 in March 2022 to Rs 3.03 in March 2023.