Shares of Sonata Software continued gaining streak for the fourth straight session on Thursday, in an otherwise volatile broader market, with the share price hitting a new all-time high on the domestic bourses. The IT stock rallied as much as 5% in intraday trade, while it zoomed nearly 40% in the calendar year 2023.
Extending its gaining momentum, Sonata Software share price opened 1% higher at ₹777.30 against the previous closing price of ₹769.90 on the BSE. During the session so far, the stock rose 5% to hit a fresh record high of ₹809, while the market capitalisation increased to ₹11,087 crore. The stock has jumped 77% in the last eight months, from its 52-week low of ₹457.50 touched on June 20, 2022.
The counter has risen over 17% in the last five sessions after the IT services company said that its subsidiary, Sonata Software North America Inc., (SSNA), signed a deal to acquire 100% stake in the U.S.-based Quant Systems Inc. in an all-cash deal of $65 million. This is the biggest-ever acquisition in Sonata Software’s history, which is likely to boost its capabilities in modernisation and digital engineering space. Quant Systems is a Texas (USA) based enterprise data analytics and cloud modernisation company.
As per the deal, the company will make an upfront payment of $65 million, while it would pay up to $95 million over the next 2 years for achievement-based earn-outs. The acquisition is expected to be closed within 30 days subject to completion of customary closing conditions.
“This acquisition is in line with Sonata’s strategy to accelerate the growth curve and build scale. It will accelerate Sonata’s capabilities in Enterprise Data Analytics, Cloud modernisation, Cyber security, Salesforce, Data Privacy, Adobe, and Digital & Mobile App solutions, including differentiated IPs for Salesforce (workbox.io) and Chatbot (Lisa) technologies,” it said in a BSE filing on February 22.
The release said the company will expand its domain expertise in banking and financial services, healthcare and life sciences, consumer/retail and others.
Founded in 2008, Quant Systems has a team of over 300 engineers in delivery centres across India (Hyderabad) and Costa Rica along with Onshore presence in North America to deliver client service. Quant has presence in BFSI, Healthcare & Life Sciences and Consumer & Retail. It has built a strong partner ecosystem of industry leading players including, AWS, Adobe, Salesforce, Snowflake, and Google Cloud.
In a fresh development, Sonata Software on Thursday informed exchanges it has signed up with Mumbai Indians as an associate partner ahead of the premier T20 women’s league in India. Sonata Software logo will be prominently visible on the players kits and this partnership marks Sonata Software’s first-ever cricket sponsorship, globally, it said.