New Delhi, NFAPost: IT company Persistent Systems will buy assets of Data Glove for $90.5 million (about Rs 677 crore) in an all-cash deal, the company said in a regulatory filing on Thursday.
Through this deal, Persistent will acquire assets of Data Glove Inc, USA, with assets of its Indian subsidiary and affiliate entities based out of Australia, UK, Canada and Singapore.
Additionally, Persistent Systems’ German arm will acquire Data Glove’s subsidiary in Costa Rica.
“The total purchase consideration payable for the acquisition of Data Glove Group is $90.5 million,” the filing said.
Data Glove provides cloud and application transformation and infrastructure and managed services. The company had consolidated revenue of $48.96 million in 2021.
“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,” the filing said.
Persistent will make an upfront payment of $50.69 million to sellers, which will be subject to customary adjustments for working capital, debt and cash on closing.
The transaction earmarks a maximum earnout of $34.88 million for the founder of Data Glove Group over the next two years.
“This amount is contingent on the achievement of certain performance thresholds,” the filing said.
Along with this, key employees of Data Glove will be eligible for an aggregate amount of $4.93 million over the next three years, contingent on employment continuity and business performance.
Persistent expects to complete the acquisition within 4-5 weeks.