Persistent Systems gains after acquisition

Persistent Systems rose 1.92% to Rs 853 at 10:04 IST on BSE after the company said its US arm acquired 100% stake in Herald Technologies for $5.2 million.

The announcement was made after trading hours yesterday, 3 September 2018.

Meanwhile, the S&P BSE Sensex was down 22.38 points, or 0.06% to 38,290.14.

On the BSE, 8,514 shares were traded in the counter so far compared with average daily volumes of 7,101 shares in the past two weeks. The stock had hit a high of Rs 858 and a low of Rs 841.05 so far during the day. The stock hit a 52-week high of Rs 890 on 14 August 2018. The stock hit a 52-week low of Rs 590 on 13 September 2017.

Persistent Systems announced that its US subsidiary, Persistent Systems Inc., has acquired Herald Technologies Inc. (or Herald Health), a start-up in the US, created to transform the data overload swamping healthcare professionals into clear and actionable insights. Herald Health is focused on implementation of proprietary platforms and related IT services for the healthcare industry. The acquired business will strengthen Persistent's IP led offerings in the healthcare domain and create a number of cross-sell opportunities. The enterprise value payable for the acquisition of 100% shares of Herald is $5.2 million, subject to customary adjustments for working capital.

On a consolidated basis, Persistent Systems' net profit rose 18.50% to Rs 87.35 crore on 10.86% increase in net sales to Rs 834.28 crore in Q1 June 2018 over Q4 March 2018.

Persistent Systems is engaged in the business of building software products.

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