Persistent Systems buys select assets from US-based firm to strengthen BFSI vertical

Persistent Systems has entered an asset purchase agreement with SoHo Dragon. Under the agreement, the IT services firm will acquire select assets from SoHo Dragon, the company said in an exchange filing on Tuesday. The acquisition will be completed in four to eight weeks, subject to conditions. 

The acquired assets will include select employees, contractors, and a customer contract. The annual revenue from these assets is an estimated $9.3 million. The deal value is $4.7 million, of which $3.09 million will be paid upfront. The remaining $1.49 million will be a cumulative earnout over three years, subject to the achievement of a certain performance threshold. A sum of $0.12 million has also been set aside for retention of a few key employees.

US-based SoHo is a full-service software application development company that focuses on document management, collaboration, cloud technology, business intelligence, and data. It primarily services banking, financial services and insurance (BFSI) customers. In addition to IT services, the firm also offers staff augmentation and direct placement services.

“The acquisition of the select assets will help in consolidating the relationship with a strategic and large customer in the BFSI domain,” Persistent Systems’ exchange filing said. 

Notably, Persistent Systems acquired New Jersey-based Starfish Associates in July this year. With the acquisition, the Pune-based company will be building on its existing engineering capabilities in the contact center and unified communications space, and expand AI-based business transformation capabilities.

In Q1FY25, Persistent Systems reported a revenue of ₹2,737.2 crore, up by 5.7% sequentially and about 18% year-on-year. The firm also registered key client wins in the finance, tech, and healthcare sectors.