TechnoPro of Japan to acquire 100 per cent stake in Udupi-based Robosoft

The Udupi-headquartered Robosoft Technologies Pvt Ltd, a leading provider of digital transformation solutions for enterprises, has signed a definitive agreement with TechnoPro Holdings of Japan for the sale of 100 per cent stake in the company.

To be executed in two tranches, the estimated price of the deal in the first tranche   is approximately ₹580 crore. 

On Tuesday, the shareholders of Robosoft Technologies announced the signing of a definitive agreement with TechnoPro Holdings, Inc. for the sale of 100 per cent stake in the company.

TechnoPro Holdings agreed to acquire 100 per cent of the shares issued and outstanding of Robosoft, which delivers solution services in a digital sphere mainly to clients in the US, Japan and India. Robosoft will become a subsidiary of TechnoPro in two-phased transactions: 80 per cent in the first tranche, and the remaining 20 per cent in the second tranche (approximately one year later).

According to details posted on the website of TechnoPro Holdings, the estimated amount of the purchase price in the first tranche is approximately ₹580 crore.

Robosoft will continue to be led by its current management team, headed by Chief Executive Officer Ravi Teja Bommireddipalli, who is also being elevated to Managing Director and Chief Executive Officer.

Started as a software developer in 1996, Robosoft was one of the pioneers to offer mobile app development as a service in 2008. The company has a strong technology stack, including back-end, middleware, front-end and analytics. It crafts digital solutions across mobile, web, wearables and smart TV. It has proven expertise in using emerging technologies such as voice IoT, AR, VR, AI and ML. Robosoft is headquartered in Udupi, with delivery centres in Mumbai and Bengaluru and sales offices in the US and Japan. The company employs nearly 1,000 people and services customers in the US, Japan, EMEA and India.

Ascent Capital, Kalaari Capital and 15 individuals, including promoters and executives of Robosoft, are the major shareholders in Robosoft.

Rohith Bhat, Founder and Managing Director of Robosoft, said the company has had a phenomenal journey over the last two decades and has grown by leaps and bounds during this period. “The partnership with Ascent Capital and Kalaari Capital heralded a strong growth era for us, and I am very happy that we are handing over the reins of the company to a global player like TechnoPro,” he said.

Quoting Takeshi Yagi, President, Representative Director and CEO, TechnoPro, a statement said TechnoPro is delighted to invest in Robosoft, an innovative leader in the digital transformation space. “We are excited by Robosoft’s rapid growth, strong leadership team, expertise in emerging technologies and deeply integrated customer relationships. We look forward to a close collaboration with Robosoft in the company’s next phase of growth and see tremendous synergies between TechnoPro and Robosoft,” Yagi said.

Ravi Teja Bommireddipalli, CEO of Robosoft, said that this transaction represents a strategic evolution for Robosoft and a unique opportunity to take our business to new heights at a time of accelerating digital adoption. The partnership with TechnoPro will provide Robosoft new opportunities to grow in Japan, which is on a path of digital transformation while continuing to expand in its core markets of the US, Europe and India through its unique ‘Emotional Design Thinking’ approach.

GCA acted as exclusive financial advisor to Robosoft and its shareholders, Indus Law and Anoma Legal acted as legal advisors; and KPMG, Deloitte and PwC acted as due diligence, and transaction tax advisors, respectively.

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