Bengaluru-based Sonata Software’s wholly-owned subsidiary Sonata Software North America, has signed a definitive agreement to acquire 100% stake in Texas-based IT solutions and software company Quant Systems, to bolster its capabilities in modernisation and digital engineering space.
The cost of the acquisition includes an upfront payment of $65 million and deferred achievement-based earn-out/pay-outs up to a maximum of $95 million payable over 2 years. The acquisition is expected to be closed within 30 days.
The acquisition, touted as the biggest in Sonata Software’s history, is in line with Sonata’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 acquisition is expected to expand Sonata’s domain expertise in banking and financial services, healthcare and life sciences, consumer/retail, and others.
“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 5 clients list,” said Samir Dhir, MD and CEO, Sonata Software.
Founded in 2008, Quant Systems has a team of over 300 engineers in delivery centres across India (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.