DSK Legal advises Sagarsoft
The firm repressed and advised on the acquisition of 100 per cent capital in IT CATS LLC, a US incorporated company
DSK Legal represented and advised Sagarsoft (India) Limited, a public listed company, in the acquisition of 100 per cent capital in IT CATS LLC, USA (“IT CATS”) from its owner Kalva Satish Chander Reddy for consideration other than cash of an aggregate value of ₹16.06 crore by issue of swap shares of the Company of 6,32,238 fully paid-up equity shares of the face value of ₹10 each at a premium of ₹244 per equity share on preferential basis to Kalva Satish Chander Reddy.
The Company is engaged in the business of providing software development and consultancy services and offers enterprise web application, mobility, workforce, and support solutions, as well as research and data mining, social media engagement, financial analytic, business intelligence, testing and quality assurance and technology-related solutions.
IT CATS incorporated under the laws of the USA, is a full-service IT consulting and staffing company with a broad range of technical skills, including but not limited to ERP, client/server and web-based application and database development.
DSK Legal assisted the Company in (i) Drafting, reviewing and negotiating Share Swap Agreement for investment by the Company by way of acquiring share capital of IT CATS from Satish Kalva for the issue of swap shares as consideration other than cash; (ii) reviewing resolutions and documents relating to the issuance of swap shares of the Company to Satish Kalva; and (iii) advising the Company on the issue of swap shares in terms of applicable regulations including the Securities and Exchange Bureau of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and requirements under applicable FEMA Regulations.
DSK Legal team was led by Partner Hemang Parekh and Senior Associates Pooja Khanna and Rajlaxmi Kale.
Harris Bricken acted as US counsel for the transaction, led by Jonathan Bench and Arlo Kipfer.
Anand Rathi investment banking team acted as investment advisor to the transaction.