Datamatics Global Services To Acquire Full Control in Datamatics Cloud Solutions

Datamatics Global Services Limited (DGS), a leading provider of digital technologies, operations, and customer experience solutions, announced a strategic move to consolidate its Salesforce business on May 8, 2024. The company’s Board of Directors approved the acquisition of the remaining 23% equity stake in Datamatics Cloud Solution Private Limited (DCSPL), a Joint Venture (JV) company established in October 2022.

Background

In October 2022, DGS entered a Joint Venture Agreement with CloudGrowth Private Limited. This agreement resulted in the formation of DCSPL, a company focused on providing Salesforce consulting and implementation services. Under the initial agreement, DGS held a 77% ownership stake in DCSPL, with CloudGrowth holding the remaining 23%.

Strategic Acquisition for Business Consolidation

The acquisition of the outstanding 23% stake signifies a strategic move for DGS. This acquisition aims to streamline and simplify the company’s Salesforce business structure. Following the acquisition’s completion, DCSPL will become a wholly-owned subsidiary of DGS, offering DGS complete control and operational autonomy.

Transaction Details and Timeline

DGS will acquire the remaining equity stake in DCSPL through a cash settlement. The transaction involves an initial payment of ₹1.24 crore, followed by a potential deferred payment of up to ₹41 lakh in October 2024. This deferred payment is contingent upon the fulfilment of specific terms and conditions outlined in the original Joint Venture Agreement. Subject to these conditions being met, the entire acquisition process is expected to be finalised within six months.

Looking Ahead

Datamatics Global Services’ acquisition of the remaining stake in Datamatics Cloud Solution signifies a significant step forward in solidifying its position within the Salesforce services domain. By establishing DCSPL as a wholly-owned subsidiary, DGS streamlines its operational structure and unlocks the potential for enhanced efficiency and growth within its Salesforce-related offerings. This strategic move positions DGS to capitalise on the expanding Salesforce market and deliver comprehensive solutions to its clients.

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