Persistent Systems Acquires Starfish Associates For Rs 173 crore By CIOTechOutlook Team

Persistent Systems Acquires Starfish Associates For Rs 173 crore

CIOTechOutlook Team | Thursday, 04 July 2024, 03:22 IST

Persistent Systems (Persistent), an Indian mid-tier IT firm, has announced plans to purchase a 100% share in Starfish Associates, a US-based software startup, for $20.7 million (about Rs 173 crore). The acquisition aims to expand Persistent's existing engineering skills in the Contact Center and Unified Communications space.

The total purchase consideration payable for the acquisition of Starfish is $20.7 million, including an upfront payment of $15.4 million (roughly Rs 130 crore) to shareholders, subject to usual adjustments for working capital, debt, and cash on closure, according to Persistent's regulatory filing.

According to the financial terms, sellers will be entitled for a maximum total earnout of $5.1 million over the next two years. This amount is subject on meeting specified performance targets. Furthermore, certain key personnel will be eligible for a total retention bonus of $0.2 million over the next two years, subject to employment continuity.

“Known for its cutting-edge Enterprise Communications automation platform, Starfish Associates caters to the world’s largest enterprises including many Fortune 500 companies. Starfish Associates' automation platform excels as an intelligent integration hub and workflow engine, facilitating seamless connections across a myriad of business applications and communication systems,” Persistent said in a statement.

It improves multi-vendor communication management by automating with platforms including Amazon Connect, Avaya, Cisco, Genesys, and Microsoft Teams. It also interfaces with important corporate platforms such as ServiceNow, Workday, and Microsoft Active Directory to help streamline workflows and operations, according to the release.