Persistent Systems Limited has announced the acquisition of select assets from Soho Dragon Solutions India Private Limited, an IT services provider catering primarily to BFSI clients. The transaction, valued at $5.94 million, underscores Persistent’s strategic push to strengthen relationships with key customers in the BFSI domain.
Key Details of the Acquisition:
- Assets Acquired:
- Select employees and contractors.
- A significant customer contract generating annual revenue of $4.9 million.
- Transaction Value:
- Upfront Payment: $3.19 million.
- Earnout: Up to $2.48 million, contingent on achieving performance benchmarks over three years.
- Retention Payment: $0.27 million for key employee retention.
- Purpose:
- To consolidate relationships with strategic BFSI customers.
- Aligns with Persistent’s broader goals of scaling its IT services in key sectors.
- Timeline:
- The acquisition is expected to be completed within 4-8 weeks, subject to closing conditions.
- Funding:
- The transaction will be executed via cash consideration.
Background on Soho Dragon Solutions:
Founded in 2016, Soho specializes in software application development for front-office operations, corporate applications, hyperscaler technologies, data warehousing, and business intelligence. Headquartered in India, the company has a strong track record in delivering IT solutions to BFSI clients.
TOPICS:
Persistent Systems