IT company Persistent Systems, on Wednesday (Feb 9), announced it had entered into an agreement to acquire the business of Princeton, New Jersey-based Data Glove Inc.
Persistent will acquire assets worth $90.5 million (about Rs 677 crore) in an all-cash deal, the company said in a regulatory filing on Thursday.
Data Glove provides cloud and application transformation and infrastructure and managed services with total annual revenue for CY21 of $48.96 million and 700+ employees worldwide.
Through this acquisition, Pune-based Persistent will boost its partnership with Microsoft, strengthen expertise in Azure-based digital transformation and other offerings in the Microsoft stack, as well as expand its geographic footprint and talent pool.
Persistent will make an upfront payment of $50.69 million to sellers, which will be subject to customary adjustments for working capital, debt and cash on closing.
The acquisition is expected to be completed within four to five weeks.
Sandeep Kalra, Chief Executive Officer and Executive Director, Persistent Systems:
“As our clients continue their digital acceleration, cloud modernization and workforce productivity remain as critical as ever to sustaining competitive advantage and reducing costs. 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.”
Ali Zaidi, Research Vice President, IDC:
“The acceleration of digital adoption during the pandemic has led to increased demand for cloud and workplace solutions. 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.”
Rajiv Korpal, Co-Founder, Data Glove:
“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. Together, we will build an industry-leading Microsoft business unit to take our clients to the next level.”
Rahul Bajaj, Co-Founder, Data Glove:
“When considering strategic alternatives, we found at Persistent a leadership team who shares a common strategic vision and a strong conviction for driving client success through innovation. Combined with Persistent’s deep cloud, security, and data expertise, we will provide unparalleled value to our clients as they continue to drive their digital agendas, with the full Microsoft stack at the core. I am beyond excited about the possibilities of what we can do together.”