Happiest Minds to acquire Noida-based PureSoftware for ₹779 cr

Software services firm Happiest Minds Technologies on Thursday signed a deal to 100% stake in PureSoftware Technologies for ₹779 crore. This includes an upfront payment of ₹635 crore on closing and deferred of up to ₹144 crore payable at the end of FY25 on achievement of set performance targets.

Through this acquisition, Happiest Minds aims to strengthen its domain capabilities in Banking, Financial Services, Insurance (BFSI) and Healthcare and Life Sciences verticals.

“The 1,200 people company will augment the capabilities and services offerings to Happiest Minds' already strong Product & Digital Engineering Services (PDES) Business Unit,” it says in a statement.

In addition to augmenting its presence in the U.S., U.K, and India, Happiest Minds will also get a near-shore presence in Mexico and offices in Singapore, Malaysia, and Africa. PureSoftware reported revenues of $43 million (around ₹351 crore) for the financial year 2023-24.

PureSoftware with a global presence and headquarters in Noida is a fast-growing Digital Engineering & Transformation Services and solutions provider with deep domain expertise. PureSoftware partners with global enterprises across focused verticals which include Banking & Financial Services and Insurance (BFSI), Healthcare & Life Sciences, Retail & Logistics, and Gaming & Entertainment. The company also has a banking-as-a-service platform “Arttha”.

The acquisition comes two months after Happiest Minds announced its new vertical organisation structure comprising six new industry groups In February. The tech services firm plans to garner $1 billion in revenues by 2031.

“PureSoftware brings with it strong capabilities in Banking, Insurance and Healthcare domains; allowing us to add value and upsell to our customers. We are excited by the potential to cross-sell Analytics, GenAI, Automation, Infrastructure Management and Cyber Security services to PureSoftware customers and drive accelerated growth for Happiest Minds,” says Joseph Anantharaju, executive vice chairman, Happiest Minds.

Shares of Happiest Minds erased opening gains and were trading flat on Thursday.

“PureSoftware has been recognized as a trusted partner by our customers for the ability to deliver solutions combining our domain knowledge with core engineering expertise in digital technologies. As a part of Happiest Minds family, we shall be able to deliver even greater value to our stakeholders including customers, employees and partners by cross leveraging the capabilities Happiest Minds has built around emerging trends in Product Engineering, Artificial Intelligence, Cloud Infrastructure management and Information security,” says Anil Baid, chairman and chief strategy officer, PureSoftware.

Net profit of Happiest Minds rose 3.5% year-on-year to ₹59.6 crore for the quarter ended December. The IT services company's revenue from operations for the third quarter rose 11.7% at ₹410 crore compared with ₹367 crore in the corresponding period last year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) in the December quarter jumped 8.2% to ₹105 crore as against ₹97.2 crore in the year-ago period.