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HeartCore Announces Agreement to Acquire 51% of Leading Digital IT Solutions Provider Sigmaways



Irvine, CA, Tokyo, and New York, NY — September 9, 2022 – Boustead Securities, LLC (“Boustead”) IPO client 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 Fremont, California-based 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 HeartCore Enterprises, Inc.

Headquartered in Tokyo, Japan, HeartCore Enterprises 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 services that allow enterprise businesses to create tailored web experiences for their clients through best-in-class design. 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-usa.com/.


About Boustead Securities, LLC

Boustead Securities, LLC is an investment banking firm that executes and advises on IPOs, mergers and acquisitions, capital raises and restructuring assignments in a wide array of industries, geographies and transactions, for a broad client base. Boustead’s core value proposition is the ability to create opportunity through innovative solutions and tenacious execution. With experienced professionals in the United States, Boustead’s team moves quickly and provides a broad spectrum of sophisticated financial advice and services. Boustead is a majority-owned subsidiary of Boustead & Company Limited, a diversified non-bank financial institution. For more information visit please visit: www.boustead1828.com

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