At its meeting held today, Datamatics Global Services Limited has approved the entry into definitive agreements, including the Share Purchase Agreement, Shareholders Agreement, and other pertinent contracts, to acquire the complete shareholding of Dextara Digital Private Limited . Dextara is a private limited company headquartered in Hyderabad, Telangana, India. Additionally, the acquisition will indirectly encompass Dextara Digital (UK) Private Limited and Dextara Digital (USA) Inc., both wholly owned subsidiaries of Dextara Digital Private Limited. The acquisition will be executed through the purchase of shares from existing shareholders, to be carried out in one or more tranches over a two-year period, adhering to the terms delineated in the Definitive Agreements.
Dextara Digital Private Limited, bearing Corporate Identification Number (CIN) U72501TG2019PTC136112, specializes in offering Salesforce consulting, implementation, maintenance, and support services.
The acquisition of Dextara aligns seamlessly with Datamatics Global growth strategy, which prioritizes hyper-scalers. Salesforce stands out as one of the largest enterprise product companies globally, with an impressive 95% of Fortune 100 companies utilizing its platform. Dextara has exhibited remarkable growth within a mere four years, achieving the prestigious Summit (Platinum) partnership status with Salesforce. Notably, the company has developed innovative products like Dextara CPQ, DXHealth+, and DXTemplates, complementing Datamatics’ objective of expanding its non-linear business segment.
Beyond its robust Salesforce expertise and product offerings, Dextara brings to the table an exceptionally skilled management team and a diverse clientele, both of significant interest to Datamatics Global. With a track record of over 600 successful Salesforce projects for more than 150 global clients, Dextara fortifies Datamatics Global capabilities and opens up new avenues for growth. This acquisition positions Datamatics to leverage Dextara’s strengths to capitalize on existing Salesforce opportunities and cross-sell our comprehensive service portfolio to Dextara’s esteemed customer base. Following the acquisition, Dextara will operate as a subsidiary of Datamatics Global Services Limited, gradually transitioning into a wholly owned subsidiary within the span of two years.
The completion of the acquisition of Dextara is contingent upon meeting the terms and conditions specified in the Definitive Agreements. The acquisition will be carried out in multiple tranches. The initial tranche, representing 80% of the shareholding, is slated for the First Closing, anticipated to occur on or before April 30, 2024, with the potential for extension per the agreement terms. Subsequent tranches, each comprising 10% of the shareholding, will follow. The Second Closing is projected to take place between 12 and 14 months after the First Closing Date, while the Third Closing is expected within a similar timeframe after the Second Closing Date. These timelines are subject to potential extensions as delineated in the Definitive Agreements. Upon completion of all tranches, Dextara will become a subsidiary of Datamatics Global Services Limited, gradually transitioning into a wholly owned subsidiary over the specified period.
The total amount payable by the Company for the Transaction will amount to INR 143,40,36,207 (Indian Rupees One Hundred Forty Three Crore Forty Lakhs Thirty Six Thousand Two Hundred and Seven). Additionally, there will be contingent consideration of up to a maximum of INR 30,63,55,671 (Indian Rupees Thirty Crore Sixty Three Lakh Fifty Five Thousand Six Hundred and Seventy One), payable based on the achievement of certain business targets and milestones as outlined in the Definitive Agreements. This contingent consideration will be disbursed over a period of two years.
In FY 2023-24, the estimated and unaudited turnover of Dextara Digital Private Limited reached INR 59,90,73,251, marking a significant increase from previous years: FY 2022-23 (INR 20,57,39,853), FY 2021-22 (INR 17,11,69,700), and FY 2020-21 (INR 8,75,53,759). This consistent upward trend highlights the company’s steady progress and market expansion efforts.