IT services firm Persistent Systems Ltd said on Thursday it has entered into a pact to buy New Jersey-based Data Glove Inc. for $90.50 million.
The acquisition is expected to be completed within 4-5 weeks.
Persistent plans to leverage this acquisition to 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.
Established in 2010, Data Glove is a global leader in transformative consulting services and business solutions with total annual revenues of $48.96 million for CY21 and more than 700 employees worldwide.
Data Glove Group specializes in providing services across the entire Microsoft Product Suite including Azure-based digital transformation, data modernization, cloud advisory services, business application innovation, workspace modernization, and intelligent automation.
As part of the acquisition, Persistent will form a dedicated Microsoft business unit as well as establish a near-shore delivery centre in Costa Rica.
“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 centre in Costa Rica and expanding our presence in the US and India,” said Sandeep Kalra, Chief Executive Officer and Executive Director, Persistent Systems.
According to IDC, the Cloud Professional Services market is estimated to reach $93.8 billion by 2025. “The acceleration of digital adoption during the pandemic has led to increased demand for cloud and workplace solutions.
Persistent’s acquisition of Data Glove and the launch of a new Microsoft business unit will help capture market share by taking advantage of the growing Azure and Microsoft-led opportunities,” said Ali Zaidi, Research Vice President, IDC.
“Microsoft-related implementation services is one of the highest spending growth segments of the global implementation services market, in particular, in the areas of cloud, analytics, and CRM,” Zaidi added.