M&A

M&A

Persistent Systems acquires US-based enterprise communication automation s'ware firm Starfish Associ

Press Release   BSE Announcement  

Pune-based, listed IT Services firm Persistent Systems, via its wholly owned US-based subsidiary Persistent Systems Inc, is to acquire 100% stake in New Jersey,NJ (USA)-based software firm Starfish Associates, LLC for USD 20.7 million. The acquisition is aimed to enhance Persistent’s engineering capabilities in the Contact Center and Unified Communications space.The upfront payment under the all cash deal will be USD 15.4 million, subject to customary adjustments for working capital, debt and cash on closing. The balance, maximum cumulative earnout of USD 5.1 million over the next two years, will be linked to certain performance thresholds. Further, certain key employees will be eligible for retention payment of an aggregate amount of USD 0.2 million over the next two years contingent on employment continuity.Founded in 2005 and known for its Enterprise Communications automation platform, Starfish Associates caters to many Fortune 500 companies. Its automation platform acts as an intelligent integration hub and workflow engine, facilitating connections across business applications and communication systems. Starfish had reported revenue of USD 8.2 million for the 12 months ending March 31, 2024. In the previous two calendar years 2022 and 2023, it reported a revenue of USD 7 million each.