Creative Newtech Targets SaaS Expansion with Zicom Acquisition

Creative Newtech Limited is set to acquire an 82.44% stake in Zicom SaaS Private Limited at an enterprise value of approximately Rs 50.50 crore.

Reader Takeaway

Strategic entry into high-margin security services; integration risk remains as the company shifts from pure-play distribution.

What just happened

Creative Newtech has convened an Extraordinary General Meeting (EGM) for November 28, 2026, to obtain shareholder approval for the acquisition of Zicom SaaS. The transaction involves issuing 2,25,000 equity shares to Onyx Saas Private Limited at Rs 1,133.33 per share, totaling Rs 25.50 crore, alongside a Rs 25.00 crore cash payment.

Why this matters

This acquisition marks a pivotal shift for Creative Newtech. While historically a technology distributor, the company is pivoting toward the 'Security as a Service' (SaaS) sector. By integrating Zicom’s AI-based surveillance and monitoring infrastructure, Creative Newtech aims to establish recurring revenue streams by leveraging its existing distribution network to cross-sell these managed security services.

Transaction Details

The pricing of Rs 1,133.33 per share aligns with SEBI ICDR regulations. The board has confirmed that promoters and key managerial personnel are not participating in this preferential allotment. Shareholders can participate in the EGM via video conferencing, with e-voting scheduled from November 25 to November 27, 2026.

What to track next

Investors should focus on the post-acquisition integration process and the management's ability to successfully scale Zicom’s security solutions within the Creative Newtech ecosystem. Successful cross-selling remains the primary indicator of long-term value creation from this acquisition.