Acquisitions · IT services
DTS buys 51% of California IT services firm Calance to expand in the US
- Buyer
- DTS (Tokyo)
- Target
- Calance (Partners Information Technology), Anaheim, California
- Value
- About ¥2.21B for 51%, plus earnout payments tied to results through 2024
- Status
- Completed on November 7, 2022.
- Date
- 2022-08-22
DTS acquired 51% of Partners Information Technology, which does business as Calance, from its Indian parent Calance Software. The Anaheim, California company provides IT staffing, IT services and SAP and SharePoint implementation, and had revenue of about $35 million in 2021. DTS paid ¥2.21 billion in cash.
Why it matters
The deal gave DTS, a mid-sized Japanese systems integrator, its first US operating base, with about 270 staff and offices in five US cities. DTS said it aimed to win manufacturing and healthcare clients and to expand to the West Coast and the South Central US.
Deal terms
DTS agreed to the purchase on August 22, 2022, and completed it on November 7, 2022. Its annual report puts the price at ¥2,211 million in cash, with a further ¥211 million in adviser and other fees. The agreement added earnout payments tied to Calance's results through 2024, and DTS paid ¥296 million under it in the year to March 2026. Takenaka Partners says it acted as DTS's buy-side adviser.
Results so far
DTS booked ¥1,307 million of goodwill on the deal. Calance's results fell short of the original business plan, and in the year to March 2025 DTS wrote off the remaining ¥138 million of goodwill. Calance is still listed as a main consolidated subsidiary, and a DTS executive became its chairman in December 2024.
Sources
Kakehashi M&A News home
