Persistent Systems acquires US-based Data Glove for $90.5 million

Continuing with its acquisition spree, Pune-headquartered Persistent Systems announced the acquisition of Princeton, New Jersey-based Data Glove for a consideration of $90.50 million (around Rs 678 crore).

Established in 2010, Data Glove is a leading player in transformative consulting services and business solutions with total annual revenue for CY21 of $48.96 million and over 700 employees worldwide. Data Glove brings extensive experience across Microsoft Azure, business applications and workplace offerings as a One Commercial Partner (OCP).

In terms of financial details of the deal, Persistent will make an upfront payment of $50.69 million to Data Glove and founders of the company will be eligible for a maximum earnout of $34.88 million over the next two years. This amount is contingent on achievement of certain performance thresholds, said the company filing. Moreover, key employees will be eliglible for an aggregate amount of $4.93 million.

Sandeep Kalra, CEO and executive director, Persistent Systems, said, “With the acquisition of Data Glove, we are forming a new Microsoft business unit to enhance our partnership and expand our expertise in Azure-based digital transformation, enabling us to capture a larger share of this high growth market. This acquisition also broadens our delivery capabilities with highly skilled talent, establishing a new nearshore delivery center in Costa Rica and expanding our presence in the US and India.”

Data Glove is a Microsoft cloud modernisation services partner with Gold level competencies in Azure Cloud Platform, data center, application development and data analytics, application integration, as well as comprehensive intellectual property to accelerate Azure adoption.

Rajiv Korpal, co-founder, Data Glove said, “Over the past decade, Data Glove’s growth has been fueled by empowering our client’s digital transformation journeys and accelerating their transition to cloud, with a deep specialization in Microsoft. Becoming a part of Persistent, the global leader in Digital Engineering, will give us immediate scale and enable new opportunities for our clients, partners, and employees.”

Ali Zaidi, research vice president, IDC said, “Persistent’s acquisition of Data Glove and the launch of a new Microsoft business unit will help capture market share by taking advantage of the growing Azure and Microsoft-led opportunities. Microsoft-related implementation services is one of the highest spending growth segments of the global implementation services market, in particular, in the areas of cloud, analytics, and CRM.”