Persistent Systems jumps 6% on acquiring SCI, Shree Infosoft

Through these acquisitions, Persistent is forming a new payments business unit and expanding its cloud capabilities

Shares of Persistent Systems jumped 6 per cent to Rs 3755 on the BSE in intra-day session on Thursday after the company said its US subsidiary will acquire North Carolina-based Software Corporation International (SCI) and its affiliate, Fusion360 for $53 million - a move that will bolster its expertise in serving banking, financial services, and insurance (BFSI) clients. 

Further, the Pune-based company also announced the acquisition of the business of New Jersey-based Shree Partners, including its subsidiary in India for $6.87 million.

With the addition of SCI and Fusion360, we are forming a new Payments business unit and expanding our BFSI expertise as well as client portfolio, Sandeep Kalra, Chief Executive Officer and Executive Director, Persistent Systems said in an exchange filing. He added that Shree Partners expands our Cloud and IT Infrastructure capabilities in BFSI and Travel & Hospitality.

"Importantly, these acquisitions bring us new points of presence in Charlotte, North Carolina, and the National Capital Region (NCR), India, bringing in new digital transformation talent to serve our clients," Kalra said.

The company announced that Persistent Systems Inc USA, a wholly owned subsidiary of the company has entered into a Stock Purchase Agreement with Software Corporation International (and its affiliate Fusion360 LLC, on September 29, 2021, to acquire Software Corporation and Fusion360 (together referred to as SCI).

The acquisition is subject to customary closing conditions which are expected to be completed within 2 weeks, it added.

Adding on, the company said it has entered into an agreement with Shree Infosoft on September 29, 2021, to acquire its business. Along with this transaction, the company, through its wholly-owned subsidiary, will acquire certain assets from Shree Partners LLC, USA, (Shree Partners) Parent company of Shree Infosoft, it said further. The said acquisition is subject to customary closing conditions and is expected to be completed within 3‐5 weeks.

At 10.08 am, the stock was trading 3.41 per cent higher at Rs 3,665 as against a rise of 0.02 per cent in the S&P BSE Sensex at 59,424.