Persistent Systems gains 6 percent, after announcing two acquisitions
Published On: Thursday, September 30, 2021 | By: Team KnowMyStock
Shares of Persistent Systems jumped 6 percent to Rs 3755 on the BSE in an intra-day session on Thursday after the company said its US subsidiary will acquire North Carolina-based Software Corporation International (SCI) and its affiliate, Fusion360. Persistent also acquired New Jersey-based Shree Partners and its India subsidiary Shree Infosoft for $6.87 million. Persistent will be acquiring 100% in both these companies for a cash payment of $53 million for SCI and $6.87 million for Shree’s US and Indian business. For SCI, Persistent would be paying $34.45 million upfront and $5.96 million per annum over the next two years. Also, Persistent would pay $2.21 million per annum for three years to retain key employees. To acquire Shree Partners, an upfront payment of $3.37 million and $1.5 million per annum will be made over two years. Another $500,000 would be paid to retain employees over the next three years.
With the addition of SCI and Fusion360, we are forming a new Payments business unit and expanding our BFSI expertise as well as client portfolio, Sandeep Kalra, Chief Executive Officer and Executive Director, Persistent Systems said in an exchange filing. He added that Shree Partners expands our Cloud and IT Infrastructure capabilities in BFSI and Travel & Hospitality.
Founded in 1990, SCI brings deep domain consulting capabilities specializing in Payment solutions, integration, and support services for an impressive portfolio of leading US Banks.
Additionally, Fusion360 provides application development, maintenance, and support for leading Payment platforms including IBM’s Financial Transaction Manager (FTM).
Persistent’s second acquisition, Shree Partners, is a digital transformation and technology solutions company that helps clients in BFSI and other industries increase profitability by implementing and maintaining innovative cloud, infrastructure, data, and AI/ML solutions that reduce costs and drive revenue.
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