M&A
Sonata Software to acquire US-based IT Services firm Encore, Indian unit for $15.8 M
Sonata Software North America Inc (SSNA), a wholly-owned subsidiary of Mumbai-based, publicly listed Sonata Software Ltd, has signed a definitive agreement with the shareholders to acquire a 100% stake in Santa Clara, CA (USA)-based Encore Software Services, Inc. Sonata will make an upfront payment of USD 6.37 million (including adjustments for working capital, cash, and net debt) and deferred payout of USD 8.25 million payable over 3 years. The turnover of this target unit is approximately USD 15.46 million. Sonata Software is to also acquire a 100% stake in Chennai-based Encore IT Services Solutions Pvt Ltd for USD 1.2 million. The turnover of this target unit is approximately USD 4.68 million. Encore Software Services (Encore USA ) is a Silicon Valley-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. Encore IT Services Solutions is the Indian unit of Encore USA. 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.
Want to receive such news items in your inbox? Click Here to sign up for a trial.
