Sonata Software to acquire Microsoft Dynamics 365 reseller Scalable
Sonata Software Ltd on Thursday said it has agreed to acquire Brisbane, Australia-based Scalable Data Systems Pty. Ltd for an enterprise value up to 5.5 million Australian dollars ($4 million or Rs 28 crore) in an all-cash deal.
“Scalable Data Systems brings great value in terms of Microsoft Dynamics 365 capabilities and resources to Sonata,” said Srikar Reddy, managing director and chief executive of Bengaluru-based Sonata Software. Microsoft Dynamics 365 is a cloud-based collection of business applications.
Scalable Data Systems is a Microsoft Dynamics 365 value-added reseller and a software vendor focused on Microsoft Dynamics 365 Finance and Operations (F&O), according to a press release. Scalable Data Systems provides Microsoft Dynamics 365 F&O solutions to clients in Australia.
Reddy said, “The acquisition will provide Sonata with additional intellectual properties (IPs) and geographical reach, along with a strong boost to its strategy to be a global leader in the Microsoft Dynamics 365 partner ecosystem with core IPs across a wide range of industries and a global footprint.”
The acquisition is expected to close in a month.
The agreement to acquire Scalable Data Systems comes more than three years after Sonata Software in October 2015 entered into a pact to take over US-based Interactive Business Information Systems Inc. for about $14 million (Rs 91 crore).
Sonata Software then said the acquisition would strengthen its footprint as a global Microsoft Dynamics partner for the retail and distribution industry.
In December 2017, Sonata Software picked up 15% stake in Denmark-based Izara ApS to grow its presence in the Nordic region.
Sonata Software’s consolidated revenue from operations stood at Rs 2,453.94 crore for the year through March 2018, up from Rs 2,370.77 crore the previous year. Profit after tax rose to Rs 192.5 crore from Rs 156.3 crore during the period.
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