Sonata Software Ltd. — Capital/Financing Update 2018

Dec 13, 2018

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13[th] December, 2018

National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Mumbai Kind Attn: Manager, Listing Department Email Id: neaps@nse.co.in Stock Code - SONATSOFTW

BSE Limited P.J. Towers, Dalal Street Mumbai Kind Attn: Manager, Listing Department Email Id: listing.centre@bseindia.com Stock Code - 532221

Dear Sir/Madam,

Sub: Intimation under Regulation 30(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

With reference to the captioned subject, we would like to inform you that Sonata Software North America, Inc. a wholly owned subsidiary of the Company, has entered into a definitive agreement today with Sopris Systems, LLC and its shareholders to acquire 100% stake in Sopris Systems, LLC, a Delaware Company.

The information required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Circular No. CIR/CFD/CMD/4/2015 dated 9[th] September, 2015 and related Press Release are enclosed with this letter.

We request you to kindly take the same on record.

Thanking you,

Yours faithfully,

For Sonata Software Limited

Digitally signed KUNDA by KUNDAN K LAL Date: 2018.12.13 N K LAL 09:05:37 +05'30'

Kundan K. Lal Company Secretary and Compliance Officer

Encl: As above

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Annexure I

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		Annexure I
Sr. No.	Particulars in respect of the Event	Details/Information of the Event
1.	Name of the target entity, details in brief such as size, turnover etc.	Sopris Systems, LLC. (“Sopris”), a Delaware limited liability company. Sopris specialises in Microsoft Dynamics for field services and project-centric companies. Turnover : US$ 7 Million(Approx)
2.	Whether the acquisition would fall within related party transaction(s) and whether the promoter/ promoter group/ group companies have any interest in the entity being acquired? If yes, nature of interest and details thereof and whether the same is done at “arm’s length”	No
3.	Industry to which the entity being acquired belongs.	Information Technology services
4.	Objects and effects of acquisition.	The acquisition will help us grow our presence in the United States. It will enhance Sonata’s capabilities in Microsoft 365 Stack.
5.	Brief details of any governmental or regulatory approvals required for the acquisition;	None
6.	Indicative time period for completion of the acquisition;	Within 1 month
7.	Nature of consideration	Cash
8.	Cost of acquisition or the price at which the shares are acquired.	Enterprise Value US$ 7 Million subject to adjustment on account of working capital and debt.
9.	Percentage of shareholding / control acquired and / or number of shares acquired.	100% interest in Sopris Systems, LLC by Sonata Software North America, Inc., wholly owned subsidiaryof the Company.
10.	Brief background about the entity acquired.	Sopris is an enterprise business solutions Company. Sopris is global gold- certified Microsoft Dynamics solution provider specializing in Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) software for engineering, construction firms, specialty contractors, field services companies and a varietyofprofessional services firms.

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Sonata Software announces signing definitive agreement to acquire US-based Microsoft Dynamics 365 Field Services partner Sopris Systems, second strategic investment in a week, aimed at achieving leadership in the global Dynamics 365 business

Bangalore, December 13th 2018 : Sonata Software, the leading global IT software services and solutions provider announced it has signed definitive agreement to acquire US-headquartered Sopris Systems.

Sopris Systems is a Microsoft Dynamics 365, Enterprise partner specializing in helping project-centric and field services companies improve business performance.

Sopris specializes in enterprise resource planning (ERP); customer relationship management (CRM), mobile field service, enterprise asset management (EAM) and professional service automation. Enterprise consulting, dedicated support and Microsoft Dynamics, provide robust solutions that help Sopris customers win more profitable business, deliver higher-quality projects and improve company-wide performance.

Sonata software last week also announced the acquisition of Brisbane, Australia headquartered partner Scalable Data Systems, a leader in providing Dynamics 365 solutions to Australian market and Commodity Trading CTRM product for Dynamics customers globally.

The Sopris acquisition reflects Sonata’s strategic intent to invest in Microsoft technologies especially Microsoft Dynamics 365 a rapidly growing platform of choice for companies wanting to digitally transform.

Sonata Software has been focused on being a Digital Transformation Partner of choice for customers in Retail, Distribution, Manufacturing, and Travel industries with its unique Platformation[TM] methodology, end-to-end digital platforms and alignment to be a strategic partner for Microsoft in their digital transformation initiatives.

The acquisition will strengthen Sonata’s US Dynamics footprint and expand the Dynamics 365 capabilities making Sonata one of the strongest and largest Dynamics 365 partners globally with depth of services and breadth of industries and IP.

In the past, the company has acquired and built a portfolio of platform IP, backed by four guiding platform principles of being open, connected, intelligent and scalable. Apart from Scalable Data Systems, Sonata has had three acquisitions recently, including travel platform Rezopia, Halosys Unified Mobility Enablement platform and IBIS Inc., the Atlanta based Microsoft Dynamics ace which added Modern Distribution platform IP and expanded US geo footprint to Sonata’s portfolio of offerings.

Commenting on the acquisition, Srikar Reddy, MD & CEO, Sonata Software said, “Sopris brings great value in terms of Microsoft Dynamics 365 capabilities and resources to Sonata. This will give additional services capability in the field service industry and a strong fillip to sonata’s strategy to be a global leader in the Microsoft Dynamics 365 partner eco system with IPs across industries. It also gives us a great opportunity to expand our US footprint and gain access to new industries. Sopris is highly respected for its ability to sell and deliver complex Dynamics projects.”

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Laura Pfohl, CEO, and Matt Pfohl co-founders of Sopris Systems commented, “Becoming a part of the Sonata team brings wonderful opportunities for us at Sopris, given the geographical spread as well as the depth and breadth of technologies that Sonata has, and Sonata’s premier status as a global Dynamics 365 partner. We’re also excited about the greater access to innovation, financial strength, access to larger opportunities and take Sonata’s Platformation[TM] methodology to our clients.”

About Sonata Software

Sonata is a global technology company that enables successful platform based digital transformation initiatives for enterprises, to create businesses that are connected, open, Intelligent and scalable. Sonata’s Platformation™ methodology brings together industry expertise, platform technology excellence, design thinking led innovation and strategic engagement models to deliver sustained long term value to customers. A trusted partner of world leaders in the Retail, Distribution, Travel and Software industries, Sonata’s solution portfolio includes its own digital platform such as Brick & Click Retail Platform©, Modern Distribution Platform© , Rezopia Digital Travel Platform©, RAPID DevOps Platform© and Halosys Mobility Platform©, best in class capabilities on ISV digital technology platforms such as Microsoft Dynamics 365, Microsoft Azure, SAP Hybris, Cloud Engineering and Managed Services, as well as new digital applications like IoT, Artificial Intelligence, Machine Learning, Robotic Process Automation, Chatbots, Block Chain and Cyber Security. Sonata’s people and systems are nurtured to bring together the depth of thought leadership, customer commitment and execution excellence to make a difference to business with technology.

For more information, press only:

Nandita Venkatesh

Sonata Software Limited CIN- L72200MH1994PLC082110 A.P.S. Trust Building, Bull Temple Road, N.R. Colony Bangalore 560019, India Tel: +91 80 67781999 Nandita.v@sonata-software.com

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