HeartCore Enterprises Inc. HTCR is a small-cap Japanese company offering a marketing suite of content management and digital transformation products.
Established in its domestic software-as-a-service (SaaS) market, with a consistent customer base of more than 800 customers, HeartCore has now entered the U.S. market.
HeartCore recently signed an agreement with information technology (IT) services company Sigmaways to acquire a majority share of 51% of the company. Along with HeartCore’s initial public offering (IPO) on the Nasdaq Stock Market, the acquisition of California-based Sigmaways may represent a strong entry by HeartCore into the U.S. SaaS market.
This acquisition could allow for vertical integration of production processes at HeartCore, thanks to the transition to Sigmaways's in-house IT solutions - reducing costs that HeartCore had previously outsourced. Along with establishing HeartCore in the center of the software development industry, both companies are excited about how the acquisition offers cross-pollination opportunities via cross-selling and upselling to their complementary client bases.
The Greek alphabet letter, Sigma (Σ), from which the company takes its name, symbolizes the standard measure for interpreting data in statistics, and Sigmaways has sought to make itself the standard of measurement in a competitive industry through its high-quality software engineering solutions.
Sigmaways, which earned revenues of nearly $9 million in 2021, offers a variety of integrated solutions in software engineering and automation, drawing on resources in India to provide its proprietary technology. HeartCore CEO Sumitaka Kanno (Yamamoto) says Sigmaways’s customer-first philosophy makes it a compatible partner.
An Enterprising Company Bringing Heart To The Market
HeartCore Enterprises offers a variety of products which help companies provide their customers with a unique online experience. These include HeartCore CMS, its content management system (described on its website as “Japan’s No. 1 CMS for six consecutive years”), and HeartCore Robo, the company’s popular robotic automation process solution that streamlines clients’ operations by automating repetitive tasks. HeartCore is also one of the distributors in Japan of International Business Machines Corp.’s IBM product IBM Process Mining, which is a software that perfects product and marketing processes via simulations and data analysis.
HeartCore Enterprises believes that its acquisition of Sigmaways will allow it to continue expanding its already impressive suite of digital marketing solutions. IPOing at $15 million, HeartCore hopes to become a major player in the international business software and services market, which was valued at over $429 billion in 2021 and has been predicted to have a compound annual growth rate of 11.7% between now and 2030, according to Grand View Research.
Direct Digital Holdings Inc. DRCT also operates in this market, although it emphasizes tailored advertising content; other SaaS companies, such as InfoBird Co. Ltd. IFDB and Zendesk Inc. ZEN, target companies looking to upgrade their digital marketing software and hardware.
“HeartCore’s majority stake acquisition of Sigmaways expands its U.S. presence with an excellent subsidiary bringing consistent revenues and streamlined R&D expenses,” HeartCore CEO Sumitaka Kanno (Yamamoto) said. “The B2B transaction ecosystem is on the cusp of a complete transformation, and HeartCore believes that Sigmaways has the right vision and positioning to lead that change.”
Sigmaways Founder Prakash Sadasivam, voiced his excitement for the acquisition saying, “This acquisition also brings us a network of IT professionals to clients across multiple industries. Combined with HeartCore’s credentials, Sigmaways will enable greater opportunities to deliver value to clients with innovation, staff augmentation, design and Talent as a Service (TaaS) for enterprise customers in many economic sectors.”
Learn more about HeartCore Enterprises Inc. here.
Learn more about Sigmaways here.
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