Synopsis: Happiest Minds announced its acquisition of PureSoftware Technologies Private Limited for up to Rs 779 crore, solidifying its position as a wholly-owned subsidiary. The acquisition, conducted through a share purchase agreement, involves an upfront cash payment of Rs 635 crore, with an additional deferred consideration of up to Rs 144 crore based on performance targets.
The acquisition, conducted via a share purchase agreement, entails Happiest Minds acquiring a 100 percent equity stake in PureSoftware, effectively establishing it as a fully-owned subsidiary of the company.
On April 25, Happiest Minds revealed its intention to acquire PureSoftware Technologies Private Limited for a sum of up to Rs 779 crore. The acquisition, facilitated through a share purchase agreement, will result in Happiest Minds securing a 100 percent equity stake in PureSoftware, thus establishing it as a wholly-owned subsidiary.
PureSoftware Technologies, boasting a paid-up capital of Rs 3.23 crore and fiscal 2024 turnover of Rs 351 crore, will be procured through an initial cash consideration of Rs 635 crore. Additionally, a deferred consideration of up to Rs 144 crore will be payable by the end of FY25, contingent upon meeting specified performance objectives, according to Happiest Minds' disclosure to the exchanges.
This strategic acquisition is set to enhance Happiest Minds' domain expertise in Banking, Financial Services, Insurance (BFSI), and Healthcare and Life Sciences sectors. It will also grant the company access to a prestigious client portfolio, as outlined in its press release.
Ashok Soota, Executive Chairman of Happiest Minds, expressed, "I am pleased to welcome the PureSoftware Team to the Happiest Minds family. Our Mission of 'Happiest People. Happiest Customers' aligns with PureSoftware's commitment to 'Customer Delight by Creating Employee Delight,' underscoring our shared goal of fostering happiness for both people and customers."
Moreover, besides bolstering its presence in the US, UK, and India, Happiest Minds will gain a near-shore presence in Mexico, along with offices in Singapore, Malaysia, and Africa. PureSoftware reported revenues of Rs 351 crore ($43 million) for FY24.
Anil Baid, Chairman & Chief Strategy Officer at PureSoftware, remarked, "PureSoftware has earned recognition as a trusted partner by our customers for delivering solutions that merge domain expertise with core engineering proficiency in digital technologies.
As part of the Happiest Minds family, we anticipate delivering even greater value to our stakeholders, including customers, employees, and partners, by leveraging Happiest Minds' capabilities in emerging trends such as Product Engineering, Artificial Intelligence, Cloud Infrastructure management, and Information security."
EY and Avendus Capital served as exclusive financial advisors to Happiest Minds and PureSoftware, respectively.
In conclusion, Happiest Minds' acquisition of PureSoftware Technologies represents a strategic move to strengthen its position in key sectors and expand its global reach.
The deal underscores Happiest Minds' commitment to enhancing customer satisfaction and leveraging emerging technologies.
With synergies between the two companies' missions and expertise, the acquisition is poised to create value for stakeholders while driving growth and innovation in the digital solutions landscape.
