Bengaluru-based Sonata Software said on Thursday that its wholly owned subsidiary Sonata Software North America has signed a definitive agreement to acquire a 100% stake in Texas-based IT solutions and software company Quant Systems.
The cost of the acquisition includes an upfront payment of $65 million and deferred achievement-based earnout/ payouts up to a maximum of $95 million payable over two years.
The acquisition, biggest in Sonata Software’s history, is in line with the company’s strategy to accelerate growth and build scale. “It will accelerate Sonata’s capabilities in enterprise data analytics, cloud modernisation, cyber security, Salesforce, data privacy, Adobe, and digital & mobile app solutions, including differentiated IPs for Salesforce (workbox.io) and Chatbot (Lisa) technologies,” the company said in a statement.
The deal is expected to expand Sonata’s domain expertise in banking and financial services, healthcare and life sciences, consumer/ retail, and others.
Samir Dhir, MD and CEO, Sonata Software, said, “We aim to be the fastest-growing next-gen digital firm delivering modernisation and digital outcomes for enterprises through our platformation framework. To achieve this vision, we have outlined some key strategic drivers to build scale through service offering expansion in modernisation, invest in BFSI and healthcare & life sciences verticals, and build global centres. Quant Systems aligns to our strategic drivers and will enable us to win larger deals in our focus verticals and adds two large clients to our top-five clients list.”
Founded in 2008, Quant Systems has a team of over 300 engineers in delivery centres across India (in Hyderabad) and Costa Rica along with onshore presence in North America to deliver high-quality client service. Quant Systems clocked revenues of $37 million during CY22.
“Joining the Sonata family will enable us to take our innovative IPs and deep expertise to a broader clientele to solve complex cloud and data management challenges. This will also open up more growth avenues for our people and deepen the bench of valuable skills,” said Srini Veeravelli, CEO, Quant Systems.
Shares of Sonata Software closed up 5.43% at `727.65 on the BSE on Thursday, after the acquisition announcement.