Persistent Systems Acquires Starfish Associates to Bolster UCaaS and CCaaS Solutions

Persistent Systems Inc., the wholly-owned U.S. subsidiary of Persistent Systems Limited, announced today the acquisition of Starfish Associates, LLC, a leading provider of enterprise communication solutions. This strategic move strengthens Persistent’s position in the Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) market by leveraging artificial intelligence (AI) for enhanced business transformation.

Expanding Capabilities in UCaaS and CCaaS

The acquisition of Starfish aligns perfectly with Persistent’s existing expertise in UCaaS and CCaaS engineering. Starfish’s intelligent integration hub and workflow engine will seamlessly integrate with Persistent’s solutions, enabling them to offer clients a more comprehensive and AI-driven suite of services. This enhanced platform will empower businesses to streamline operations, optimise workflows, and achieve greater operational excellence.

Transaction Details

The total purchase consideration for Starfish is valued at $20.7 million, comprised of the following:

• Upfront Payment: $15.4 million will be paid to Starfish shareholders, subject to customary adjustments for working capital, debt, and cash on hand at closing.
• Earnout: Sellers are eligible to receive a maximum cumulative earnout of $5.1 million over the next two years, contingent upon achieving specific performance targets.
• Retention Payment: To incentivise key employee retention, an aggregate amount of $0.2 million will be distributed over the next two years, conditional upon continued employment.

The acquisition is expected to close within 4-6 weeks, subject to the fulfilment of customary closing conditions. Upon completion, Persistent Systems Inc. will acquire a 100% ownership stake in Starfish.

About Starfish Associates

Starfish is a globally recognized software company specializing in enterprise communication solutions for large corporations, including Fortune 500 companies. Their intelligent integration platform acts as a central hub, facilitating seamless communication and workflow automation across various business applications and communication systems.

Looking Ahead: A Stronger Presence in the UCaaS and CCaaS Landscape

By acquiring Starfish, Persistent Systems gains a valuable asset that complements its existing UCaaS and CCaaS offerings. The combined expertise in AI-powered solutions will position Persistent as a leading force in this rapidly growing market, allowing them to deliver superior business transformation capabilities to clients worldwide.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.