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Sonata Software Ltd. — M&A Activity 2021
Jul 28, 2021
60845_rns_2021-07-28_b2bca738-ff93-48c6-b1c6-6cc44d0b3848.pdf
M&A Activity
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28 July, 2021
National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex, P.J. Towers, Dalal Street Mumbai Mumbai Kind Attn: Manager, Listing Department Kind Attn: Manager, Listing Department Email Id: [email protected] Email Id: [email protected] Stock Code - SONATSOFTW 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., (SSNA) a wholly-owned subsidiary of Sonata Software Limited (Sonata /Company), has signed a definitive agreement with the Shareholders of Encore Software Services, Inc. a California Corporation (hereinafter referred to as “Encore US”) on 28 July, 2021 to acquire 100% stake in Encore US. The detailed information relating to this acquisition is 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 9[th] September, 2015 and related Press Release is enclosed with this letter.
We request you to kindly take the same on record.
Thanking you,
Yours faithfully,
For Sonata Software Limited MANGAL Digitally signed by MANGAL KRISHNARAO KRISHNARAO KULKARNI Date: 2021.07.28 08:47:10 KULKARNI +05'30' Mangal Kulkarni Company Secretary, Compliance Officer and Head-Legal
Encl: Annexure I Press release
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Annexure I
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| 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. |
Encore Software Services, Inc.,is a Silicon Valley, California based IT services organization providing user experience, data insights, and real time collaboration services to clients in financial services, hi-technology, life sciences, retail and logistics verticals. Turnover: US $15.46Mn(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”. |
NA |
| 3. | Industry to which the entity being acquired belongs. |
Information Technology Services |
| 4. | Objects and effects of acquisition. | The acquisition will help Sonata enhance its capabilities in Cloud engineering, Application development and maintenance and data management and domain expertise in healthcare and pharmacy. |
| 5. | Brief details of any governmental or regulatory approvals required for the acquisition; |
None |
| 6. | Indicative time period for completion of the acquisition; |
The transaction is expected to be completed within 90 days. |
| 7. | Nature of consideration | Cash |
| 8. | Cost of acquisition or the price at which the shares are acquired. |
Upfront payment of US $6.37Mn (including adjustments for working capital, cash, and net debt) and deferred payout of US $8.25Mn payable over 3 years. |
| 9. | Percentage of shareholding / control acquired and / or number of shares acquired. |
100% shareholding in Encore Software Services, Inc., by Sonata Software North America, Inc., wholly owned subsidiary of the Company. |
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- Brief background about the entity Encore Software Services, Inc. was founded in 2010, acquired. headquartered in US with major business lines in logistics, healthcare, testing, retail, and supply chain industries. It is a global IT service provider enabling digital transformation with experience in cloud, application management, testing, data analytics, product engineering services & information security.
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Sonata Software announces Acquisition of San Jose, US Headquartered Encore Software Services, strengthens ISV and Microsoft led strategy, enters new verticals in healthcare and logistics.
Bangalore, July 28, 2021: Sonata Software today announced signing of definitive agreements to acquire Encore Software Services, Silicon Valley based IT Services Company providing User experience, Data Insights, and real time collaboration services to clients in the Healthcare, Supply-chain / Logistics, and ISV industries.
Encore Software Services, incorporated in 1998 and head quartered in San Jose, with development center in Chennai, has established itself as a provider of Cloud Application development services, Cloud Infrastructure, DevOps, Testing and Maintenance.
With this acquisition Sonata further strengthens its geographical presence in the US with a highly experienced leadership team based in the US, it adds significant capability to enhance Sonata’s Platformation[TM] led digital transformation strategy, by strengthening Microsoft led Cloud transformation services and digital test automation services and provides an entry into new verticals like health care and logistics, apart from reinforcing its ISV business and Microsoft led cloud offerings.
Commenting on the acquisition, Srikar Reddy, MD & CEO, Sonata Software said, “This is a continuation of our M&A strategy focusing on strategic acquisitions aligned to our Platformation[TM] led digital transformation strategy, access to seasoned local leadership talent and entry into new industry verticals. We are excited to welcome the Encore team to the Sonata family and commit to the Encore clients, continued high level of service apart from the other capabilities Sonata brings to make the relationships broader and deeper.”
Say Radhakrishnan, President , and Muralee, CEO , both co-founders of Encore “We are excited to join the Sonata family, we see great synergies that will help scale our business offering new digital services & lead to opportunities for our people. Sonata’s Platformation[TM] strategy will allow us to become more strategic to our clients and allow us to serve them with a greater set of capabilities.”
About Encore Software Services | About Sonata Software
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]