Persistent Systems Ltd. on Monday announced the acquisition of “select assets” from SoHo Dragon Solutions India Pvt. The total purchase consideration was $5.94 million (Rs. 50.86 million).
According to exchange filings, Persistent has entered into an asset purchase agreement with M/s. Soho Dragon Solutions India Pvt. will acquire certain assets from Soho on January 6, 2025.
The Pune-based company expects the acquisition of the assets to be completed within four to eight weeks, subject to the satisfaction of customary closing conditions.
Soho’s annual revenue from these assets is estimated at $4.9 million. We provide IT services to companies in the banking, financial services and insurance sectors.
The acquisition of selected assets will help Persistent strengthen its strategic and large customer relationships in the BFSI domain, the filing added.
Assets being acquired include select employees, contractors and customer contracts.
The $5.94 million contract includes a $3.19 million upfront payment. Of the total amount, $2.48 million will be implemented over three years. However, this balance will only be paid out if you meet certain performance thresholds. The company will also pay $270,000 to retain several key employees.
Persistent Systems clarified that Soho stock will not be involved in the transaction as Soho will only acquire selected assets.
It added that this is not a related party transaction and that the Persistent Systems promoter and promoter group have no interest in the transaction.
Persistent Systems Ltd.’s share price closed 1.55 per cent lower at Rs 6,305.10 per share on the BSE and 1.59 per cent lower on the benchmark Sensex.
