On 28 July 2021, Sonata Software announced the acquisition of a US-based company, Encore Software Services. This deal is intended to increase the capabilities of the company in cloud engineering, data management, and application development, and maintenance.
According to a statement in a regulatory filing, Sonata Software North America Inc (SSNA), a completely owned subsidiary of Sonata Software, and the shareholders of Encore Software Services, Inc have entered into a definitive agreement.
To complete the acquisition of this US-based company, Sonata software is going to pay USD 6.37 million as upfront payment, which includes working capital, net debt, and cash adjustments, and the company will pay USD 8.25 million more to the current owners within 3 years.
It was in 1998 when the San Jose headquartered Encore Software Services was incorporated. In India, this US-based company has set up a development center in Chennai.
According to the MD and CEO of Sonata Software, Mr. Srikar Reddy with this acquisition the company has taken another step in the direction to follow its Platformation led digital transformation strategy, acquire seasoned local leadership talent, and mark presence in new industry domains. The company is focused to make strategic acquisitions as a part of its M&A strategy.
With the unification with Sonata Software, Encore’s clients will be able to enjoy the other capabilities of Sonata, along with the continued high level of service from Encore, which will strengthen their relationship.
According to another filing, a definitive agreement has also been signed by Sonata to acquire the Encore IT Services Solutions Company, based in Chennai, at the cost of USD 1.2 million. Now the company will be able to access new talent with its new development center in Chennai.
The new 300 talented technology professionals joining the Sonata team hold expertise in pharmacy, logistics, and healthcare domains, and are dedicated to application development and maintenance, cloud engineering, and data management.