Persistent Systems to acquire US-based Starfish Associates for USD 20.7 mn

New Delhi, Jul 4 (PTI) Indian IT company Persistent Systems’ US-based arm is set to acquire a 100 per cent stake in New Jersey-based software company Starfish Associates for a cash consideration of USD 20.7 million.

The acquisition is expected to be completed within 4-6 weeks, the company said in a statement.

“Persistent Systems Inc, USA (Wholly owned Subsidiary) has entered into a Stock Purchase agreement for the acquisition of Starfish Associates, LLC, USA (‘Starfish’) on July 2, 2024 (US time).

“Further, Persistent Systems Limited, the parent company (‘the Company’) is not a party to this transaction,” the filing said.

The acquisition builds on Persistent’s existing engineering capabilities in the Unified Communications and Contact Center, expanding its strong AI-driven business transformation capabilities and expertise in driving operational excellence, the statement said.

“This acquisition brings together Starfish Associates’ innovative platform with Persistent’s leading AI-powered automation capabilities and a strong customer base, enabling significant optimisations, enhanced efficiencies for workflows, and agile responses to dynamic business environments,” it said.

Starfish is a global software company providing enterprise communication solutions. As of March 31, 2024, its revenue for the last 12 months was USD 8.2 million.

“With the acquisition of Starfish Associates, Persistent is positioned to disrupt the Unified Communications and Contact Center markets. The synergies between Persistent and Starfish Associates bring immediate benefits to Persistent’s clients and position the firm aggressively in the customer experience market, further highlighting its broad-based AI capabilities,” said Phil Fersht, CEO and Chief Analyst, HFS Research.

Shares of Persistent Systems hit a 52-week high at Rs 4,760 apiece on BSE on Thursday. The stock closed 3.34 per cent up at Rs 4,749.40.