Sonata Software on Wednesday said it will acquire US-based IT services company Encore Software Services, a move that will enhance its capabilities in cloud engineering, application development and maintenance and data management.
In a regulatory filing, Sonata Software said its wholly-owned subsidiary Sonata Software North America Inc (SSNA) has signed a definitive agreement with the shareholders of Encore Software Services, Inc.
The cost of acquisition involves 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, it added.
Encore Software Services, incorporated in 1998, is headquartered in San Jose, with development centre in Chennai.
"This is a continuation of our M&A strategy focusing on strategic acquisitions aligned to our Platformation 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," Srikar Reddy, MD and CEO at Sonata Software, said.
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In a separate filing, Sonata Software said it has also signed a definitive agreement with the shareholders of Chennai-based Encore IT Services Solutions Company.
The acquisition will help Sonata expand into new development centre in Chennai, thus giving access to wider talent pool, the filing said.
It will give access to 300-person technology talent pool focused on cloud engineering, application development and maintenance and data management and with domain expertise in healthcare pharmacy and logistics, it added.
The cost of acquisition involves an investment of USD 1.2 million, it said.
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