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Sonata Software Ltd. Capital/Financing Update 2020
60845_rns_2020-03-04_4b41c1cf-3aed-455c-ab92-b717b381261c.pdf
Capital/Financing Update
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March 4, 2020
National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Mumbai Kind Attn: Manager, Listing Department Email Id: [email protected] Stock Code - SONATSOFTW
BSE Limited P.J. Towers, Dalal Street Mumbai Kind Attn: Manager, Listing Department Email Id: [email protected] 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 Europe Limited, a wholly-owned subsidiary of Sonata Software Limited (Sonata), has signed definitive agreements with the Shareholders of GAPbuster Ltd, a UK registered Company (hereinafter referred to as "GAPbuster" or "GBW") on March 4, 2020 to acquire 100% stake in GAPbuster. The details of this acquisition are provided in Annexure I, enclosed herewith.
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 9th 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
MANGAL KRISHNARAO KULKARNI Digitally signed by MANGAL KRISHNARAO KULKARNI Date: 2020.03.04 10:52:30 +05'30'
Mangal Kulkarni Company Secretary and Compliance Officer
Annexure I
| Sr. | Particulars in respect of the Event | Details/Information of the Event |
|---|---|---|
| No. | ||
| 1. | Name of the target entity | GAPbuster Ltd, UK, specializes in providing solutions toenterprises for measuring customer experience. |
| 2. | Whether the acquisition would fallwithin related party transaction(s)andwhetherthepromoter/promoter group/ group companieshave any interest in the entity beingacquired? If yes, nature of interestand details thereof and whether thesame is done at "arm's length" | No |
| 3. | Industry to which the entity beingacquired belongs. | Information Technology Services |
| 4. | Objects and effects of acquisition. | GAPbusteris a specialized company in the CustomerExperienceManagementspace.TheGBWcustomerexperienceplatformleveragesadvancedAIandMLcapabilities to deliver actionable recommendations thathelpbrandsdeepencustomerloyaltyandimprovesatisfaction. This acquisition is an extension of Sonata'sPlatformationTM play that further strengthens our singularfocus of becoming a Digital transformation Partner of choicein retail, distribution, CPG and travel verticals by leveragingour IPs and platforms. With this acquisition Sonata will beable to offer additional value to its customers, whileGAPbuster will be able to expand in newer geographies. |
| 5. | Brief details of any governmental orregulatory approvals required forthe acquisition; | None |
| 6. | Indicativetimeperiodforcompletion of the acquisition; | The acquisition is expected to be closed within 45 days. |
| 7. | Nature of consideration | Cash |
| 8. | Cost of acquisition or the price atwhich the shares are acquired. | Investment of USD 4.8 million (net of working capital)including USD 0.5 million which is deferred considerationpayable on the expiry of 1 year. |
| 9. | Percentage of shareholding / controlacquired and / or number of sharesacquired. | 100% |
| 10. | Brief background about the entity | GAPbusterhas beenhelping enterprise enhancecustomer |
|---|---|---|
| acquired. | experience around the world since 1994. | |
| Today, GAPbusterwith a team of experts in Customer | ||
| Experience (CX), help in makingeveryday experiences | ||
| continually better. The entity acquired has presence in UK, | ||
| US, Australia and Asia. | ||
| It's expertise ranges from initial program consultation, | ||
| through toadvancedanalytical insightsinto customer | ||
| experience that helps enterprises deliver better customer | ||
| experience. | ||
| Turnover – GBP8 million (Approx.) |
***
Sonata Software makes strategic acquisition of GBW, a leading global player in the exciting Customer Experience (CX) Space
Bengaluru, March 4th , 2020 : Sonata Software today announced signing of definitive agreements to acquire GAPbusters Limited (GBW), the Melbourne headquartered company that has been amongst pioneers in the CX domain serving renowned brands globally for nearly thirty years.
As companies are increasingly focusing on measuring and managing customer experience to stoke their growth, CX solutions are playing a significant part in most organizations' digital transformation initiatives. As per Fortune Business insights, "The demand for customer experience management systems is rising across various industries and its market is expected to gain significant traction owing to the recent technological advancements. According to a new study by Fortune Business Insights, the global customer experience management market is anticipated to be worth USD 23.9 Billion by 2026, as against USD 6.2 Billion in 2018, growing at a CAGR of 18.5% "
While GBW has for long been known for its Mystery shopping, Brand /Compliance Audits & Competitor benchmarking programs. Over the last few years, the company has taken a platform based approach for its new solution offerings in employee survey, feedback management, voice of customer programs to widen its CX bouquet leveraging advanced AI & ML capabilities to deliver insightful & actionable recommendations for its clients with more evolved CX requirements.
Commenting on the acquisition Mr. Srikar Reddy, MD & CEO, Sonata Software said, "This acquisition is exciting for Sonata as it is a reaffirmation of our Platformation led approach to digital transformation adding a major platform led customer experience offering to our current solutions, creating substantial value to our existing & prospective clients by providing a more comprehensive digital transformation offering covering 360 degrees of the customer journey, possibly making Sonata very unique in its ability to offer such a unified experience across the customer life cycle." Further elaborating Mr. Srikar Reddy said "In-fact, in the Retail, CPG, Service & Travel Verticals which has been one of our focus areas, given our own IP's, we will now be able to offer a one-stop-shop with the CX solution offering to go with the IP's & all our Clients and prospects who are constantly looking to monitor, measure, garner insights and improve their services need not go looking for proven, trustworthy & best in class CX solutions with deep industry insights as a big plus".
The GBW acquisition, coming as it does on the back of a previous acquisition last year of Scalable Data Systems, a Brisbane headquartered company, amongst the other acquisitions & investments that Sonata has made over the last 24 months, not just strengthens Sonata's footprint in Australia but also opens up new geographies in South East Asia & Europe where GBW has large clients in the QSR, retail, automotive and oil & gas space.
Mr. Grant Salmon, CEO of GBW commented, "We are excited being part of Sonata. We see an opportunity to differentiate ourselves through adopting the PlatformationTM approach and to further enrich and enhance our offerings leveraging Sonata's world class capabilities in AI & other cutting edge technologies. Our existing clients too will be delighted as they will continue to get the high service quality they are used to, besides gaining access to a wider set of capabilities through the financial strength, stability and global footprint that Sonata brings. We would now not only be able to invest quickly to scale our business in terms of reach, capability and service, but also leverage
Sonata's global presence to access and service new markets. Our people will have opportunities for a more diverse choice of solutions and to develop their careers, while opening up the scope to extend these virtues to newer markets and geographies"
The legal, regulatory & commercial aspects of the acquisition will be completed in due course.
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 [email protected]