Sonasoft Announces Letter of Intent to Acquire Cornerstone Technologies

Press Announcement

Sonasoft Corp. (OTCPK: SSFT), (the “Company”), a leader in eDiscovery solutions and business continuity services, is pleased to announce that it has signed a non-binding letter of intent (LOI) with Cornerstone Technologies, to acquire Cornerstone Technologies and all related interests and assets.

Based in the heart of Silicon Valley, Cornerstone Technologies is a leading provider of engineering services focused on the design, deployment, migration, and management of IT workloads for enterprise customers. With expert focus on messaging migration, identity access management, modern data center, and managed services solutions, Cornerstone Technologies plays a pivotal role in the transformation of their clients’ IT environments.  Cornerstone Technologies is a key partner to Microsoft, Dell/EMC, VMware, and TransVault, and the company has built an impressive customer list across multiple verticals, which include retail, high tech, healthcare, public transportation, and financial services.

“This is an excellent match,” said Andy Khanna, CEO of Sonasoft Corp. “Cornerstone Technologies has perfected the business model for IT services.  Its sales team knows how to get in front of the right customers and win deals.  Cornerstone’s execution is stellar.  Best of all, Cornerstone Technologies offers expert services not only in the technical niches that Sonasoft offers but across broader IT solutions.  It just fits and expands Sonasoft’s reach across the IT enterprise.”

Sonasoft’s intent is to acquire Cornerstone Technologies, which will continue to operate as a wholly owned subsidiary of Sonasoft under the management of Frank Velasquez, who founded Cornerstone Technologies in 2007. Cornerstone’s technical expertise and proven track record with service delivery and project management would significantly enhance the company’s ability to expand its market reach and to develop, design, and deliver new products and technological solutions to the industry.

“We are extremely excited about the prospect of teaming up with Sonasoft and the potential of our combined organizations,” said Frank Velasquez, President and CEO of Cornerstone Technologies.  “The possibilities are endless.  Sonasoft’s strength is in its first-rate technology solutions; Sonasoft knows how to develop products that solve real problems.  Our engineering services team’s technical expertise and success with project management when coupled along with Sonasoft’s technology and solutions will create a seamless synergy.”

This acquisition would immediately result in an approximate $15 million in added annual revenue to the combined company’s bottom line, which further strengthens and positions Sonasoft for a rapid expansion into 2018 and beyond.

The combining of these two established leaders in the IT space is a strategic move to prepare for the launch of a breakthrough technological product which has been under development at Sonasoft for quite some time. This product relates to eDiscovery and analytics; it has the potential to become a standard in a number of related industries. Details relating to this project will be released in the near future. Additionally, Sonasoft will enable Cornerstone Technologies to expand and deepen its service offerings in the rapidly changing IT landscape.

The closing of this acquisition is subject to the completion of due diligence and execution of definitive agreements. Shareholders and the investment community will be kept updated regarding the details of this acquisition accordingly.

Additional Reading: