HeartCore Announces Definitive Agreement to Acquire 51% of Leading Digital IT Solutions Provider Sigmaways
September 08 2022 - 4:05PM
HeartCore Enterprises, Inc., (“HeartCore” or the
“Company”), a leading software development company, has
signed a definitive agreement to acquire a 51% majority stake in
privately-held Sigmaways, Inc. (“Sigmaways”), a software
engineering service provider delivering IT solutions. Under the
terms of the agreement, HeartCore is expected to acquire 51% of
Sigmaways in a cash and stock transaction. The transaction is
subject to customary closing conditions, including completion of a
due diligence review by HeartCore. The agreement has been
unanimously approved by the Board of Directors of both companies.
Upon closing, the senior management team of Sigmaways will enter
into long-term Employment Agreements and take an active leadership
role in the combined business. Prakash Sadasivam, founder of
Sigmaways, will join HeartCore’s Board of Directors following
closing.
Following closing, HeartCore expects that its customers will be
able to implement Sigmaways as an integration specialist firm for
automation, web, and software solutions to expand their services
and products for an enhanced client experience throughout the
United States and globally. With a robust portfolio of services,
solutions, and best-in-class engineering processes, Sigmaways’ 2021
unaudited revenues were $8.7 million. HeartCore expects that this
transaction would reduce development costs across all existing
HeartCore verticals through Sigmaways’ long-standing relationships
and resources throughout India and Vietnam. Following closing,
HeartCore’s clients and sales team would have even more tools for
contextual, empathetic outreach to their contacts. In the field of
automation, AI, and business process management, HeartCore believes
the two companies are well aligned to augment primary sales
processes for many of the nearly 800 enterprise companies that rely
on HeartCore throughout Japan.
“HeartCore’s proposed majority stake acquisition of Sigmaways
would expand its U.S. presence with a strong subsidiary expected to
bring recurring revenues and an expectation of streamlined R&D
expenses,” said HeartCore CEO, Sumitaka Kanno Yamamoto. “Sigmaways
is a well-respected organization that has successfully proven its
ability to utilize technology to help customers reach their
business goals, which is on brand with our corporate philosophy and
culture. We believe the B2B transaction ecosystem is on the cusp of
a complete transformation, and that Sigmaways has the right vision
and positioning to lead that change. Our team is thrilled to
continue its work at the intersection of machine learning,
language, and sales and we look forward to the closing of this
acquisition, as we intend to fully capitalize on all the synergies
hand in hand with the Sigmaways team.”
Prakash Sadasivam, founder of Sigmaways, added: “Our deep
expertise as a system integrator in product engineering and
technology solutions has helped clients turn IT into strategic
assets through our digital advisory services. This collaboration
will bring a network of IT Professionals to clients across multiple
industries. Combined with HeartCore’s credentials, Sigmaways
expects to expand into greater opportunities to deliver value to
clients with digital innovation, managed services, staff
augmentation, design, and Talent as a Service (“TaaS”) for
enterprise customers in many economic sectors.”
HeartCore and Sigmaways’ corporate culture and commitment to
digital transformation for their clients are well aligned. Each
company’s proprietary technology and processes sift through
millions of pieces of information each day to learn what’s
happening with prospects and deliver information to sales engineers
who implement new robotic processes, automation, and business
process modeling. Savvy businesses are already incorporating
automation into their daily routines, and sales teams that don’t
embrace this technology risk being left behind. Automation
technologies enable salespeople to automate manual processes like
researching their prospective buyers and crafting personalized
emails, giving representatives valuable time back to focus on
closing the deal with their customers.
The closing is expected to occur in the fourth quarter of
2022.
About Sigmaways, Inc.Sigmaways,
Inc., founded in Fremont, CA in 2006, collaborates with software
enterprises to deliver award-winning end-to-end digital
transformation and through its fast-growing technology consulting
services enables clients across the globe to stay ahead of the
competitive curve. Digital transformation continues to be a
priority with expedited demand in recent years for new business
models, customer experiences, and a connected ecosystem.
About HeartCore Enterprises,
Inc.Headquartered in Tokyo, Japan, HeartCore Enterprises,
Inc. is a leading software development company offering Software as
a Service (SaaS) solutions to enterprise customers in Japan and
worldwide. The Company also provides data analytics to create
tailored web experiences for their enterprise clients. HeartCore’s
customer experience management platform (CXM Platform) includes
marketing, sales, service, and content management systems, as well
as other tools and integrations, which enable companies to enhance
the customer experience and drive engagement. HeartCore also
operates a digital transformation business that provides customers
with robotics process automation, process mining, and task mining
to accelerate the digital transformation of enterprises. Additional
information about the Company’s products and services is available
at www.heartcore.co.jp and https://heartcore-enterprises.com/.
Forward-Looking StatementsAll
statements other than statements of historical facts included in
this press release are forward- looking statements. In some cases,
forward-looking statements can be identified by words such as
“believe,” “intend,” “expect,” “anticipate,” “plan,” “potential,”
“continue” or similar expressions. Such forward-looking statements
include risks and uncertainties, and there are important factors
that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements. These
factors, risks, and uncertainties are discussed in HeartCore’s
filings with the Securities and Exchange Commission. Investors
should not place any undue reliance on forward-looking statements
since they involve known and unknown, uncertainties and other
factors which are, in some cases, beyond HeartCore’s control which
could, and likely will materially affect actual results, and levels
of activity, performance, or achievements. Any forward-looking
statement reflects HeartCore’s current views with respect to future
events and is subject to these and other risks, uncertainties, and
assumptions relating to operations, results of operations, growth
strategy, and liquidity. HeartCore assumes no obligation to
publicly update or revise these forward-looking statements for any
reason, or to update the reasons actual results could differ
materially from those anticipated in these forward-looking
statements, even if new information becomes available in the
future. The contents of any website referenced in this press
release are not incorporated by reference herein.
HeartCore Investor Relations Contact: Gateway
Group, Inc.Matt Glover and John YiHTCR@gatewayir.com(949)
574-3860
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