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Bangalore-based Sonata Software has acquired a controlling stake in California-based Rezopia for an undisclosed sum.
This will help the company build Intellectual Property (IP) and get access to clients globally.
Another acquisition In a separate transaction, Sonata added that it will also acquire the businesses of Xyka India, a company that provides services to customers using Rezopia’s software. This software is a cloud computing-based solution that can enable travel companies such as airlines to use specific transportation-related software to help them in their everyday business such as monitoring holiday packages, on a subscription basis.
The acquisition will help Sonata beef up its revenues from the transportation sector and also gets access to customers of Rezopia, which includes some of the leading travel agencies globally.
Talking about the acquisition, Srikar Reddy, MD & CEO of Sonata, said the company intends to strengthen its travel and tourism vertical and the acquisition brings to the table competencies of IP and software platform-led services. For Rezopia, it gets to develop these solutions quicker as it gets access to 3,000 employees and a chance to bring down software development costs.
Mid-size companies are pushing hard to differentiate, gain access to IP and customers at a time when larger peers such as TCS and Cognizant are increasingly competing on IP and platform-led growth, which tend to come at higher margins, when compared to conventional IT services, which have gotten commoditised, according to Sanchit Vir Gogia, analyst with Greyhound Research. A few days ago, RPG-group company Zensar Technologies acquired US-based Professional Access from 3i Infotech to increase IT services revenue from the retail e-commerce segment for an undisclosed sum.
Professional Access (PA) is one of the largest partners for Oracle’s ATG web and Endeca search platforms and at the time of the acquisition, Harsh Goenka, Chairman of RPG and Zensar, had said that the acquisition would help Zensar increase its market share in the e-commerce segment.
SaaS-based model The global travel and expense management software market has been witnessing a shift towards Software-as-a-Service (SaaS)-based travel and expense management software use and is expected to grow at a CAGR of 6.16 per cent till 2016, according to research from TechNavio.
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