IT firm Persistent Systems has acquired Herald Health, a US-based startup that focuses on the healthcare sector, for an enterprise value of USD 5.2 million.
The move will help strengthen Persistent's IP led offerings in the healthcare domain and create a number of cross-sell opportunities, Persistent Systems said in a regulatory filing.
Born out of a hackathon in 2015, Herald Health has developed a product bringing intelligent workflows and care delivery processes needed for digital transformation in the healthcare space. Its revenue for the 12 months ending April 30, 2018 stood at USD 65,000.
"This acquisition further strengthens our IP portfolio in healthcare...It's not enough just to collect data, you have to give providers user-friendly tools and actionable insights in real time. Herald Health has proven that when you do this in even one hospital, hundreds of doctors and thousands of patients can benefit," Persistent Systems General Manager (Healthcare Solutions) Rahul Patel said.
As part of the deal, Persistent will make an upfront payment of USD 2.3 million to all shareholders of Herald. There is also a deferred payment component of USD 2.9 million, payable to management employees over a three-year period that is contingent on performance and retention of such management employees.
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