Capillary Technologies has entered into a definitive agreement to acquire SessionM, the customer engagement and loyalty company, from Mastercard.

Capillary Technologies offers AI-powered cloud-native products and solutions to large enterprise customers globally monetized through long term subscription contracts. According to the company’s publicly filed investor presentation, the acquisition is reflective of an inorganic growth strategy to win further penetration of a Total Addressable Market in North America estimated to be $8bn as of 2024.

Capillary was recently named a Leader in Loyalty Technology Solutions in The Forrester Wave™: Loyalty Technology Solutions, Q4 2025. The company was ranked highest among all vendors in both Current Offering and Strategy, scoring a 5/5 in 22 out of 27 criteria in the report.

The acquisition is the company’s fifth, beginning with Persuade in 2021, Rewards+ and Brierley in 2023, and Kognitiv in 2025.

The deal is reported to be $20 million in cash and will add $35 million in annual recurring revenue (ARR), boosting Capillary’s current $82 million by about 40%, Reddy said.

SessionM serves more than 40 enterprise customers, including Fortune 500 companies, adding major airlines, airports and QSR chains to Capillary’s portfolio.

As part of the agreement, a specialized team within SessionM will transition to Capillary, ensuring that the platform’s deep technical expertise is preserved. SessionM’s esteemed global customer base which includes Fortune 500 retailers, airlines, and CPG brands will continue to receive the same high-caliber support and service they experienced before the acquisition.

Full details and context around the impact of the acquisition can be found in this investor presentation (available on the Capillary website) issued under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.