Datamatics Acquires Majority Stake In US-based Cignex
Datamatics Global Solutions has acquired 72 per cent stake in Cignex Global Holding Corporation, a firm engaged in open source and SAP Connect solutions.
California-based Cignex has a topline of $ 22 million and the acquisition follows a year after Datamatics entered into a JV partnership with the company. Founded in 2000, Cignex provides solutions across verticals, which include Web Content Management, Portals & Social Collaboration, e-commerce, and Documents & Records Management.
"The company benefits from its focused strategy on Open Source Enterprise Content Management and a highly experienced team of 400 plus consultants," Datamatics said in a disclosure.
While a report by BL http://www.thehindubusinessline.com/industry-and-economy/info-tech/article2362817.ece?homepage=true said the deal value of Rs 120 crore(~$ 26.4 million) will be paid out over the next two years based on the completion of several milestones, a PTI report http://timesofindia.indiatimes.com/tech/news/software-services/Datamatics-acquires-72-stake-in-Cignex/articleshow/9625411.cms pegged the deal value at $17.39 million in cash.
This acquisition will also benefit Datamatics in increasing its global footprint, with Cignex's presence in markets like San Francisco and Singapore. Domestically, it would reinforce Datamatics' strategy for establishing base in tier 2 cities through a strong presence in Ahmedabad.
Cignex brings global client base including Electronic Arts, Medco, Sesame Street, Daiichi Sankyo, Nomura Bank, Singapore Telecom and DBS Bank.
Datamatics has also acquired Vista Info Systems last quarter, thereby increasing its focus on Embedded Systems space in Aeronautics and Automative sector. This deal also strengthens Datamatics' domestic presence in Bangalore and Chennai.