Business
HeartCore Announces Definitive Agreement to Acquire 51% of Leading Digital IT Solutions Provider Sigmaways
Summary of Proposed Acquisition and Strategic Rationale Sigmaways generated approximately $8.7 million (unaudited) revenue for the year ended December 31,
About this update from Heartcore Enterprises, Inc.
[{"type":"text","content":"Summary of Proposed Acquisition and Strategic Rationale Sigmaways generated approximately $8.7 million (unaudited) revenue for the year ended December 31, 2021Acquisition would expand the operational footprint in the U.S., expected to add significant revenue to HeartCore’s top lineAnticipated to provide complementary cross-sell and upsell opportunities for both companiesFollowing closing, HeartCore expects to reduce production costs, transitioning from outsourcing to leveraging Sigmaways’ teamShared corporate philosophy of putting the customers first SAN FRANCISCO and TOKYO, Sept. 08, 2022 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc., (“HeartCore” or the “Company”), a leading software development company, has signed a definitive agreement to acquire a 51% majority stake in privately-held Sigmaways, Inc. (“Sigmaways”), a software engineering service provider delivering IT solutions. Under the terms of the agreement, HeartCore is expected to acquire 51% of Sigmaways in a cash and stock transaction. The transaction is subject to customary closing conditions, including completion of a due diligence review by HeartCore. The agreement has been unanimously approved by the Board of Directors of both companies. Upon closing, the senior management team of Sigmaways will enter into long-term Employment Agreements and take an active leadership role in the combined business. Prakash Sadasivam, founder of Sigmaways, will join HeartCore’s Board of Directors following closing. Following closing, HeartCore expects that its customers will be able to implement Sigmaways as an integration specialist firm for automation, web, and software solutions to expand their services and products for an enhanced client experience throughout the United States and globally. With a robust portfolio of services, solutions, and best-in-class engineering processes, Sigmaways’ 2021 unaudited revenues were $8.7 million. HeartCore expects that this transaction would reduce development costs across all existing HeartCore verticals through Sigmaways’ long-standing relationships and resources throughout India and Vietnam. Following closing, HeartCore’s clients and sales team would have even more tools for contextual, empathetic outreach to their contacts. In the field of automation, AI, and business process management, HeartCore believes the two companies are well alig...