Persistent Systems hits record high after acquisition of NovaQuest

The announcement was made after market hours on Wednesday, 16 January 2013.

Meanwhile, the BSE Sensex was up 34.39 points or 0.17% at 19,852.02.

On BSE, 5,822 shares were traded in the counter as against average daily volume of 63,732 shares in the past one quarter.

The stock hit a high of Rs 575.50 so far during the day, which is a record high for the counter. The stock hit a low of Rs 568.60 so far during the day. The stock had hit a 52-week low of Rs 301.10 on 3 March 2012.

The stock outperformed the market over the past one month till 16 January 2013, surging 14.88% compared with the Sensex's 2.59% gain. The scrip had also outperformed the market in past one quarter, jumping 29.74% as against Sensex's 6.67% surge.

The small-cap software firm has equity capital of Rs 40 crore. Face value per share is Rs 10.

NovaQuest is a leading value added reseller (VAR) and services provider of Dassault Systemes' 3DEXPERIENCE platform and applications. With this acquisition, Persistent Systems enters into a strategic partnership with Dassault Systemes to sell and offer support, maintenance and deployment services as an authorized VAR for Dassault Systemes in the United States. Terms of the acquisition were not disclosed.

Commenting on the development, Hari Haran, President, Persistent Systems Inc. said, "Persistent Systems and Dassault Systemes have developed a strong partnership, and now with the acquisition of NovaQuest, we are further able to expand our relationship and support for Dassault Systemes applications, as well as grow our PLM business across new industry verticals. NovaQuest brings a proven track record of successfully helping companies with knowledge capture and better decision-making and we look forward to continuing to serve and add value to NovaQuest's customers. We are delighted to have the NovaQuest team of experts join the company and, as a Dassault Systemes VAR, we look forward to helping companies increase their adoption and extract the maximum value from their Dassault Systemes investments".

Bruno Latchague, Executive Vice President of Value Solutions and Managing Director of North America for Dassault Systemes said, "Persistent Systems brings significant value to the Dassault Systemes community and we are pleased to partner with them. Their deep expertise in product development and technology services, combined with NovaQuest's knowledge of Dassault Systemes solutions, will help companies compete more effectively by transforming their innovation processes".

On a consolidated basis, Persistent Systems' net profit rose 7.38% to Rs 44.65 crore on 8.69% growth in net sales to Rs 326.86 crore in Q2 September 2012 over Q1 June 2012.

Pune-based Persistent Systems caters to offshoring outsourced product development (OPD) market. The company provides customised services to global software product firms and start-ups. The company has 300 customers spread across North America, Europe, and Asia.

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