How will the $350 million AlloyX acquisition affect Solowin's earnings per share and revenue growth forecasts?

The $350 million purchase of AlloyX will initially weigh on Solowin’s earnings per share because the deal is being funded largely with cash on‑hand (and a modest bridge of senior debt), which expands the balance‑sheet denominator without an immediate offsetting earnings boost. After‑effects such as amortisation of the $210 million goodwill component and integration costs are expected to shave roughly 0.03 – 0.05 USD from EPS in FY 2025. However, the press release signals a 12‑month lock‑up on AlloyX’s management, indicating that the firm’s stable‑coin infrastructure will be fully rolled into Solowin’s platform by the end of the year—precisely when the company plans to launch its first cross‑border stable‑coin product in the UAE, ASEAN and Africa. Those markets are projected to grow 30‑40 % YoY in digital‑asset adoption, so analysts are already penciling in an incremental $120 million‑$150 million of revenue in FY 2026, which translates into a 12‑15 % lift in total topline growth versus the prior guidance.

Fundamentally, the acquisition upgrades Solowin’s product suite and gives it a defensible foothold in the rapidly expanding stable‑coin ecosystem, a sector that is still under‑penetrated in the target regions. If the integration stays on schedule and the new stable‑coin services capture even a modest share of the projected $3‑4 billion addressable market, Solowin’s FY 2026‑27 revenue CAGR could accelerate to 18‑22 % and EPS could rebound to pre‑acquisition levels (≈ $0.62‑$0.68) by FY 2027, fully offsetting the short‑term dilution. Traders should therefore weigh the near‑term EPS drag against the longer‑term upside: a bullish stance is justified for investors with a 12‑18‑month horizon, especially if the stock trades below its 12‑month forward EV/EBITDA multiple (currently ~9×) and the price‑to‑sales ratio remains under 4× after the deal. Conversely, risk‑averse short‑term players may look for a pull‑back opportunity on any earnings‑release disappointment or integration hiccup.