Magellanic Cloud Limited (Mcloud) has announced a strategic merger with IVIS International Private Limited (IVIS), aiming to enhance business efficiency, streamline operations, and improve financial stability. This merger is set to bring significant synergies to both entities by eliminating duplication of efforts, reducing administrative costs, and enhancing corporate governance.

Details of the Merger

As of December 31, 2024, the financial details of both companies stand as follows:

• IVIS International:

  • Paid-up Capital: ₹1,415.72 lakh

  • Net Worth: ₹15,520.17 lakh

  • Turnover: ₹7,871.67 lakh

• Magellanic Cloud:

  • Paid-up Capital: ₹11,687.90 lakh

  • Net Worth: ₹20,372.05 lakh

  • Turnover: ₹6,222.77 lakh

Nature of Business

• IVIS International Private Limited: Specializes in video monitoring and surveillance services and the sale of monitoring/surveillance equipment.

• Magellanic Cloud Limited: Engaged in software development, digital transformation, AI/IoT, and drone-based solutions catering to real-world applications.

Rationale for the Merger

The integration of IVIS International into Magellanic Cloud is aimed at achieving the following key objectives:

1. Reduction of duplication and costs: The merger eliminates redundant efforts and reduces compliance costs.

2. Enhanced management efficiency: Streamlining operations will ensure centralized control and better corporate governance.

3. Operational clarity: The merger provides a more structured and transparent organizational framework.

4. Improved cash flow: Access to a larger combined cash flow enables Magellanic Cloud to fund new business opportunities and strengthen its financial position.

5. Simplified shareholding: The elimination of a step-down subsidiary creates a clearer corporate structure.

6. Business synergy: The merger fosters greater integration and operational flexibility, leading to improved efficiency in the combined business entity.

Share Exchange & Shareholding Changes

• No cash consideration is involved in this merger, as IVIS International is a wholly owned subsidiary of Magellanic Cloud.

• There is no change in shareholding as a result of the merger.

Strategic Impact on the Market

With this merger, Magellanic Cloud strengthens its position in the AI, IoT, and surveillance technology sector, setting the stage for greater expansion and innovation. The integration will allow the company to capitalize on both surveillance and digital transformation solutions.

This move aligns with the company’s long-term strategy to consolidate its presence in the technology domain and enhance financial performance through operational synergies.

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