Persistent Systems has entered into an agreement to acquire North Carolina-based Software Corporation International (SCI) and its affiliate, Fusion360, and the business of New Jersey-based Shree Partners including its subsidiary in India.
Following the announcement, shares of Persistent Systems jumped 4.84% to end at Rs 3715.75 today.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).
SCI enhances Persistent's capabilities and will serve as the foundation of a dedicated payments business unit.
Meanwhile, Shree Partners, established in 2005, 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.
The total purchase consideration payable for the acquisition of SCI and Fusion 360 is $53 million.
Persistent Systems will acquire Shree Infosoft, India, along with certain assets of Shree Partners, USA - the parent company of Shree Infosoft - for $6.87 million.
These acquisitions are subject to customary closing conditions which are expected to be completed in a span of 3-5 weeks.
Sandeep Kalra, chief executive officer and executive director, Persistent Systems, "We continue to see rapid acceleration of digital transformation with our financial services clients, requiring not only technology but domain expertise in areas like payments and regulatory compliance. 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. Similarly, Shree Partners expands our cloud and IT infrastructure capabilities in BFSI and travel & hospitality. Importantly, these acquisitions bring us new points of presence in Charlotte, North Carolina, and the National Capital Region (NCR), India, bringing in new digital transformation talent to serve our clients."
Persistent Systems is a global services and solutions company delivering digital engineering and enterprise modernization.
The IT firm reported a 9.79% jump in consolidated net profit to Rs 151.24 crore in Q1 June 2021 over Rs 137.75 crore in Q4 March 2021.
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