Magellanic Cloud to merge subsidiary iVIS in its company structure

Digital transformation solutions provider Magellanic Cloud has announced the completion of the acquisition of its wholly-owned subsidiary iVIS International India. Under the deal, iVIS will be directly integrated into Magellanic Cloud’s company structure. It is expected to strengthen the latter’s growth and its position in the surveillance and ITeS sector. 

To be sure, Magellanic Cloud announced the acquisition of iVIS in 2022 by way of cash consideration of approximately ₹290 crore. Since then iVIS has contributed nearly 25% to Magellanic Cloud’s consolidated revenue. offering state-of-the-art intensive vigilance and AI/ML-enabled intervention systems, iVIS caters to a diverse clientele across various sectors. With a strong presence in over 20,000 sites in India, their expertise lies predominantly within the banking sector, making them a valuable asset to Magellanic Cloud's service portfolio. The merger will have no bearing on Magellanic Cloud investors, the company said in a statement.

“This strategic merger of iVIS with Magellanic Cloud represents a significant milestone for us. By bringing iVIS directly under our umbrella, we gain the exceptional opportunity to leverage their proven expertise and extensive market reach while optimising resource allocation. The combined entity will emerge as a stronger force, offering clients a wider range of comprehensive solutions,” said Joseph Reddy Thumma, CEO of Magellanic Cloud.

To be sure, in May Magellanic Cloud announced its entry into the logistics sector by bagging a ₹43 crore drone deal from an undisclosed Indian robotics firm. Under this agreement, the company will be delivering 45 CargoMax series drone kits — along with RTF Quadrotor Airframe, Flight Controllers, RC Controllers, EO Payload, and Transport Case. All these pieces of equipment will be built in the Telangana-headquartered company’s Bengaluru facility.