Persistent Systems on Thursday announced that it has entered into an agreement to acquire the business of Princeton, New Jersey-based Data Glove Inc.
The company will also launch a new Microsoft business unit with a focus on Azure Cloud.
“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 company said in a regulatory filing.
One Commercial Partner
Established in 2010, Data Glove is a cloud and application transformation, infrastructure and managed services company with over 700 employees worldwide. It has extensive experience across Microsoft Azure, business applications and workplace offerings as a One Commercial Partner (OCP). Data Glove is a Microsoft Cloud Modernisation Services Partner with Gold level competencies in Azure Cloud Platform, Data Centrer Application Development and Data Analytics, Application Integration, as well as comprehensive intellectual property to accelerate Azure adoption.
“Building on Microsoft Azure’s impressive growth, these expanded capabilities will bolster Persistent’s existing partnership and serve as the foundation for a new dedicated Microsoft business unit at Persistent.” the company said.
The newly formed unit will focus on Microsoft training and certifications apart from client sales and service delivery, working closely with community colleges and regional universities to foster new talent.
The total purchase consideration payable for the acquisition of Data Glove Group is $90.50 million, according to a regulatory filing. Post closing, the assets of Data Glove Inc., its Indian subsidiary and its affiliates in various geographies will be acquired by Persistent, through its wholly owned subsidiaries and affiliates. Additionally, 100 per cent ownership of Data Glove IT Solutions Limitada, Costa Rica will be acquired by Persistent Systems Germany GmbH.
The cost of acquisition includes a $34.88 million maximum earnout for the founders of Data Glove Group over next two years. This amount is contingent on achievement of certain performance thresholds, the company said. 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.
Sandeep Kalra, Chief Executive Officer and Executive Director, Persistent Systems said, “As our clients continue their digital acceleration, cloud modernisation 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,” said Kalra.
Rajiv Korpal, Co-founder, 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. Together, we will build an industry-leading Microsoft business unit to take our clients to the next level.”
Rahul Bajaj, Co-founder, Data Glove said, “When considering strategic alternatives, we found at Persistent a leadership team who shares a common strategic vision and a strong conviction for driving client success through innovation. Combined with Persistent’s deep cloud, security, and data expertise, we will provide unparalleled value to our clients as they continue to drive their digital agendas, with the full Microsoft stack at the core. I am beyond excited about the possibilities of what we can do together.”
Published on
February 10, 2022
