eClerx has announced 100% acquisition of CLX Europe SPA (CLX) for Euro25mn in an all-cash deal, at a valuation of 1.3x EV/Sales and 5.5x EV/EBITDA and it is expected to be EPS accretive. CLX creates, manages and delivers creative assets globally to the multi-channel market for luxury brands and major retailers. eClerx will fund the deal from internal accruals with balance sheet cash at Rs4.17bn. We believe that the deal provides sectoral diversification & digital augmentation opportunity along with an enhanced foothold in Europe. We revise our FY16E/FY17E earnings estimate by...