In the first phase, Lumina Datamatics will acquire 80% of TNQTech for Rs 336-crore by the end of December 2024. The remaining 20% stake will follow by July 2026, contingent on earnings before interest, taxes, depreciation, and amortisation (EBITDA) and other conditions, according to a stock exchange filing.
Deloitte Touche Tohmatsu India LLP acted as the financial advisor to Lumina Datamatics, while ICICI Securities advised TNQTech's shareholders.

TNQTech specialises in AI-driven publishing technology and services, catering to commercial and open-access publishers as well as learned societies in Europe and North America. The company reported a turnover of INR 289.49 crore for the fiscal year ending September 2024.

Sameer Kanodia, managing director and CEO of Lumina Datamatics, said, “This acquisition will collectively strengthen us to over 6,500 employees globally and establish us amongst the dominant service providers in the world of digital content. It aligns perfectly with our growth strategy of expanding our capabilities in being part of the future of publishing content and technology as we continue to stay ahead in the ever-changing publishing landscape.”

He highlighted that the addition of TNQTech will bolster Lumina Datamatics’ existing AI-enabled technology suite. “This acquisition will enable us to strengthen our suite of AI-enabled technology and products. These are used by some of the largest commercial publishers, prestigious learned societies, associations, and university presses, and through them, by millions of authors,” he added.

Mariam Ram, managing director of TNQTech, expressed optimism about the partnership. “We will benefit from Lumina Datamatics’ rich experience of working with global enterprise customers and their broad range of publishing and technology solutions. We see a clear alignment with TNQTech’s offerings in these areas. We look forward to sharing our expertise and our suite of products, our deep domain knowledge, our use of AI/ML models and data-driven intelligence, all of which serve to make the process of scholarly publishing simpler, faster, and smarter,” she noted. 

Lumina Datamatics has steadily grown its footprint in the publishing and retail sectors. The company claims to serve eight of the ten largest global publishers and three of the five largest retailers. Its offerings range from design and composition services to retail branding solutions, including web scraping for counterfeit detection.

Earlier this year, Lumina Datamatics expanded its Southeast Asian operations with a new office in the Philippines. It also acquired Chennai-based diacriTech Technologies and its US subsidiary in May 2023, with Nova Capital Advisors advising on that deal.

The TNQTech acquisition aligns with this broader expansion strategy, further strengthening Lumina Datamatics’ role in digital publishing. While this move enhances the company’s market reach and technology portfolio, the integration of TNQTech will be critical in ensuring the deal delivers on its promises. 

The publishing industry is witnessing rapid technological change, with companies racing to meet the demands of faster and more efficient workflows. The acquisition places Lumina Datamatics in a stronger position to capitalise on these trends backed with its combined workforce of over 6,500 employees.

This deal also raises questions about future consolidation in the sector as competitors look to respond to Lumina Datamatics’ aggressive expansion. For now, the latter appears set to establish itself as a leading player in the increasingly crowded publishing and content technology market.

(Source: Campaign India)