The IT company has entered into an agreement to acquire the business of Princeton, New Jersey-based Data Glove Inc.
The total purchase consideration payable for the acquisition of Data Glove Group is $90.50 million. It includes upfront payment of $50.69 million. Founders of Data Glove Group will be eligible for a maximum earnout of $34.88 million over next two years. This amount is contingent on achievement of certain performance thresholds. Key employees of Data Glove Group will be eligible for an aggregate amount of $4.93 million over the next three years contingent on employment continuity and business performance.The acquisition is expected to be completed (closing of the proposed transaction) within 4-5 weeks or as soon as thereafter subject to satisfaction of customary closing conditions.
Established in 2010, Data Glove is a global leader in transformative consulting services and business solutions with total annual revenue for CY21 of $48.96 million and 700+ employees worldwide.
Data Glove brings extensive experience across Microsoft Azure, business applications and workplace offerings as a One Commercial Partner (OCP). Data Glove is a Microsoft Cloud Modernization Services Partner with Gold level competencies in Azure Cloud Platform, Data Center, Application Development and Data Analytics, Application Integration, as well as comprehensive intellectual property to accelerate Azure adoption.
Through this acquisition, Persistent will enhance 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.
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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."
Persistent Systems is a global services and solutions company delivering digital engineering and enterprise modernization. On a consolidated basis, the IT company's net profit rose 9.1% to Rs 176.39 crore on 10.4% increase in revenue from operations to Rs 1491.71 crore in Q3 December 2021 over Q2 September 2021.
Shares of Persistent Systems were almost flat at Rs 4368.90.
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