In 2020, Perforce Software, a leading provider of enterprise-scale software development and DevOps tools, entered into an acquihire agreement with Welkin Soft Tech Private Limited, a Bangalore-based software development company specializing in digital transformation and enterprise solutions. Through this deal, Perforce aimed to bolster its development capabilities in India by acquiring the skilled workforce of Welkin Soft Tech and integrating them into its global operations. Majmudar & Partners advised Perforce on the Indian law implications of this acquihire, focusing on employment law, tax regulations, and the legal processes.
Facilitating the Transaction
Majmudar & Partners played a pivotal role in facilitating the smooth execution of the acquihire transaction, advising Perforce on critical Indian legal requirements. Key contributions include:
- Employment Law Compliance: Advised on all relevant employment regulations, ensuring the seamless transition of Welkin Soft Tech employees into Perforce’s operations while ensuring compliance with Indian labor laws.
- Taxation and Structuring: Ensured that the transaction structure was tax-efficient and adhered to Indian tax laws, particularly in respect of the treatment of employee benefits and acquisition costs.
- Corporate Governance and FDI Compliance: Guided Perforce on corporate governance matters, including Foreign Direct Investment (FDI) regulations, ensuring that the acquisition and integration of Indian assets adhered to regulatory standards.
- Legal Due Diligence: Conducted a comprehensive due diligence process to identify any legal risks or compliance issues related to Welkin Soft Tech’s contracts, assets, and liabilities.
Perforce Software’s acquihire of Welkin Soft Tech was a strategic move that enabled the company to strengthen its software development capabilities and expand its presence in India. Majmudar & Partners ensured that the transaction complied with Indian labor and regulatory laws, facilitating a seamless integration of Welkin’s employees into Perforce’s global operations.
With years of experience in complex cross-border M&A transactions, Majmudar & Partners is a trusted partner in handling regulatory compliance and ensuring smooth transitions. Contact us today to learn how we can assist your company in achieving its strategic objectives through sound legal guidance.