March 15, 2021 @ 8:33 by Richard Dawson
A digital engineering company backed by Goldman Sachs has acquired Sunderland-based technology consultancy Saggezza.
The deal represents Infostretch’s first acquisition since it gained private equity investment from Goldman Sachs Merchant Banking and Everstone Group in August 2020.
Saggezza has grown rapidly since its formation in 2005, employing over 500 people across six offices in the UK, US and India.
Recently, the company launched its Salesforce consulting and implementation practice to help clients maximise the return on investment of their CRM investment.
This has helped Saggezza take on 40 new members of staff for its UK team in the last 12 months, and the acquisition by Infostretch will see a further 40 roles created in the year ahead.
Rutesh Shah, Infostretch CEO, said: “Saggezza’s deep expertise in software design and implementation is a perfect complement to our digital engineering and data analytics capabilities.
“With the addition of their CRM capabilities, we see an opportunity to quickly grow our footprint in our existing client base and leverage those expanded capabilities to win new business.
“This combination is a positive development for the clients of both companies, which include several Fortune 500 clients.”
Global technology merger-and-acquisition deals amounted to £458.4 billion in 2020, an increase of 91.8 per cent year-on-year, and Saggezza CEO Arvind Kapur believes such partnerships will be crucial to driving the industry forward in the future.
He said: “Competing and winning in the future will depend increasingly on an organisation’s ability to seamlessly blend human and digital assets into their customer engagement and business operations.
“By joining forces with Infostretch, we can expand upon our suite of transformative, advisory and execution services to keep our current and prospective clients at the forefront of the digital frontier.”
Saggezza will become a wholly owned subsidiary of Infostretch with executives joining the Infostretch leadership team.
The transaction is subject to customary closing conditions and is expected to be completed within the second quarter this year.