Persistent Systems to acquire New Jersey-based Data Glove in $90.5m deal
Persistent Systems, an Indian technology services company, has agreed to acquire Data Glove, a New Jersey-based provider of business transformation services, in a deal worth up to $90.5 million.
The consideration includes a maximum earnout of $34.88 million to be paid over the next two years, which will be contingent on meeting certain performance thresholds.
Founded in 2010, Data Glove specializes in offering services covering the entire Microsoft product suite including Azure based digital transformation, business application innovation, cloud advisory services, data modernization, intelligent automation, and workspace modernization.
For the year 2021, Data Glove earned revenue of $48.96 million.
Rajiv Korpal — Co-Founder of Data Glove said: “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.”
Through the acquisition, Persistent Systems hopes to strengthen its partnership with Microsoft, bolster expertise in Azure-based digital transformation and other offerings in the Microsoft stack, apart from growing its geographic presence and talent pool.
Persistent Systems also gains nearshore capability with center in Costa Rica in addition to locations in the US and India.
The Indian IT services firm has also announced forming a new Microsoft business unit with focus on Azure Cloud. It said that the newly created unit will concentrate on Microsoft training and certifications by closely working with community colleges and regional universities for fostering new talent.
Sandeep Kalra — CEO and Executive Director of Persistent Systems said: “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.”
The deal, which is subject to the meeting of customary closing conditions, is expected to close within four to five weeks or as soon as thereafter.