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Sonata Software gains on acquiring stake in US-based firm

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Capital Market
Last Updated : Feb 25 2020 | 1:31 PM IST

Sonata Software said that its wholly‐owned subsidiary, Sonata Software North America Inc, has signed an agreement to acquire upto 17% stake in US-based SemiCab.

Shares of Sonata Software rose 0.92% to Rs 339.60. It traded in the range of Rs 335.90 and Rs 339.75 so far during the day.

SemiCab Inc is a US-based startup specializing in providing technology platforms for shippers, carriers and drivers in transportation and logistics. It addresses problems in the logistics industry through a unique and proprietary technology platform. SemiCab Platform facilitates interactions between shippers (retailers, manufacturers and wholesalers who need their freight moved) and carriers (large trucking companies, independent contractors, owner operators who transport the freight), bringing down costs for shippers, while increasing the earnings for truck drivers, truck companies and movers.

The strategic investment is aligned with Sonata's strategy of acquiring or making strategic investments in companies, that have IP that enables digital transformation of businesses. The investment will make Sonata's Platformation focus sharper in being the digital transformation partner of choice for customers in retail, distribution and other verticals that rely on logistics, the company said in a filing.

It added that the indicative time period for completion of the acquisition is approximately one year, subject to closing conditions.

The stake has been acquired for investment of upto $1.4 million in cash and upto $300K for services over a period of 1 year subject to SemiCab achieving agreed milestones.

Sonata Software is a global IT Services company that provides services in business intelligence and analytics, application development management, mobility, cloud, social media, testing, enterprise services, and infrastructure management services.

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First Published: Feb 25 2020 | 12:23 PM IST

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