M&A

M&A

Persistent Systems acquires Software Corporation International, Shree Infosoft

BSE Disclosure  

Publicly listed Persistent Systems is to acquire Charlotte, North Carolina-based Software Corporation International (SCI) and its affiliate Fusion360 LLC for a total $53 million. SCI and Fusion360 provide payments solutions, integration, and support services to leading North American banks. The consolidated revenue of SCI was $17.08 million for the year ended December 31, 2020. SCI will serve as the foundation of a dedicated payments business unit of Persistent. The payout for the deal includes an upfront payment of $34.45 million to the shareholders of SCI, who will be eligible for a maximum amount of $5.96 million per annum over next two years. Key employees and consultants of SCI will be eligible for an aggregate amount of $2.21 million per annum at the end of Year 1, Year 2 and Year 3. Persistent is to also acquire Gurgaon-based IT Services firm Shree Infosoft Pvt. Ltd. and its Brunswick, New Jersey, USA-based parent company Shree Partners LLC for $6.87 million. In addition to the upfront payment of $2.37 million in USA and $1 million (INR 7.35 Cr.) in India, the shareholders of Shree Partners LLC will be eligible for a maximum amount of $1.5 million per annum over next two years. Key employees will be eligible for an aggregate amount of $500,000 over the next three years. Shree Partners and Shree Infosoft had reported consolidated revenues of $7.6 million for the year ended March 31, 2021.