Persistent Systems Acquires Select Assets from Soho Dragon Solutions

Persistent Systems Limited has announced the acquisition of select assets from M/s. Soho Dragon Solutions India Private Limited. The deal, valued at $5.94 million, is expected to strengthen Persistent presence in the BFSI sector. Persistent share price was trading up by 0.70% at 9:59 AM on January 7, 2025.

Key Details of the Acquisition

Persistent Systems signed an Asset Purchase Agreement on January 6, 2025, with Soho Dragon Solutions India Private Limited. This agreement covers the acquisition of specific assets, including employees, contractors, and a customer contract. The acquired assets are projected to generate annual revenue of $4.9 million.

The transaction will be executed in two phases:

• Upfront Payment: $3.19 million.
• Earnout Component: $2.48 million over three years, contingent on performance milestones.
• Retention Payment: $0.27 million to retain key employees.

Strategic Impact

The acquisition aligns with Persistent Systems’ strategic goal of consolidating its position in the BFSI (Banking, Financial Services, and Insurance) domain. By integrating these assets, Persistent aims to deepen its relationship with a key BFSI client, enhancing service offerings and scalability in IT solutions.

About Soho Dragon Solutions

Founded in 2016, Soho Dragon Solutions operates in IT services, focusing on front-office operations, corporate applications, hyperscaler technologies, and business intelligence solutions. With an estimated $4.9 million annual revenue, its assets offer significant value to Persistent’s growth plans.

Financial Considerations

The acquisition is purely a cash transaction, ensuring seamless integration. The total cost includes upfront and performance-linked payments spread over three years, ensuring flexibility and accountability for the acquired assets’ performance.

Closing Timeline

The acquisition is expected to be completed within 4–8 weeks, subject to regulatory and customary approvals. Persistent has confirmed there are no related-party transactions, and promoters hold no interest in the deal.

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