Software services provider Mastek Ltd has entered into a definitive agreement to acquire the businesses of Evolutionary Systems Pvt. Ltd (Evosys India), a firm that offers Oracle cloud implementation and consultancy services.
Mastek has acquired the US, UK and global businesses of Evosys India through Trans American Information Systems Pvt. Ltd, a wholly-owned subsidiary, according to Mastek.
Another subsidiary, Mastek (U.K.) Ltd has signed an agreement to acquire Evolutionary System’s business operations in the Middle East.
The two parties did not disclose the financial details of the transaction.
Full-service law firm Khaitan & Co. was the advisor to Mastek Ltd. in the transaction.
The acquisition, which is subject to customary regulatory approvals and closing conditions, will help Mastek add to its bespoke service offerings. It will also help the company’s customers in speeding up their transition to digital processes and access value from their relevant assets.
“Financially, this transaction will be immediately accretive to our growth and earnings however, we must be more ambitious,” Mastek Group chief executive officer John Owen said.
Evolutionary Systems, which was founded by Umang Nahata and Rakesh Raman in 2006, says it provides solutions related to Oracle Cloud, Oracle ERP Cloud, product-as-a-service solutions, artificial intelligence and machine learning. The company says it has over 80 clients in sectors such as engineering, healthcare, hospitality and retail.
Mastek, meanwhile, was established in 1982. The company says it is an enterprise digital transformation specialist with a presence in the UK, the US and India. Its core product offerings include services such as application development, support and testing, analytics, consulting and digital commerce.
In December last year, the software services provider sold two-fifths of its holding in Majesco Ltd’s American subsidiary for $15.94 million (around Rs 112.8 crore). It offloaded about 2 million shares, or a 4.7% stake, in Majesco USA at $7.97 apiece, it said in a stock-exchange filing.
The company retains a little more than 3 million shares that it intends to sell in the “ensuing future”, it said. Mastek had, in 2014, demerged its insurance products and services business into Minefields Computers Pvt. Ltd. This was renamed as Majesco Ltd.