Persistent Systems Shares in Focus; Acquires SoHo Dragon LT Assets to Strengthen BFSI Sector

Persistent Systems has signed an asset purchase agreement with SoHo Dragon LT, UAB, for assets worth $2.01M. The deal includes employees, contractors, and a $1.65M annual revenue stream, aimed at boosting BFSI sector relations, the company said in a press release on the stock exchanges.

Persistent Systems Agreement Details

Persistent Systems, a leading IT services company, has recently entered into an agreement to acquire specific assets from SoHo Dragon LT, a company based in Lithuania. This move is part of Persistent’s strategy to expand and solidify its position in the BFSI (Banking, Financial Services, and Insurance) sector. 

The transaction is valued at $2.01 million and includes both upfront and performance-based payments.

The assets being acquired primarily include a select group of employees and contractors from SoHo Dragon LT, which specialises in providing IT services to customers in the BFSI domain. This acquisition is expected to help Persistent Systems strengthen its relationship with a major customer in this important sector.

Strategic Benefits for Persistent Systems

The deal includes an upfront payment of $1.07 million, with an additional earnout of up to $0.83 million over the next three years, based on the achievement of specific performance goals. Furthermore, a retention payment of $0.11 million will be made to ensure the retention of key employees from SoHo Dragon LT.

Founded in 2020 and headquartered in Kaunas, Lithuania, SoHo Dragon LT offers a wide range of IT services, including software application development, business intelligence, and data warehousing. This acquisition will allow Persistent Systems to enhance its capabilities in these areas, which are crucial for businesses in the BFSI sector.

The transaction is expected to be completed within 4 to 8 weeks, pending the satisfaction of customary closing conditions. Persistent Systems believes that this acquisition will be an important step in its ongoing efforts to strengthen its offerings and cater to the growing demands of the BFSI industry

Share Price Performance

Persistent Systems Limited is experiencing a decline in its stock price, with a drop of 149.75 points, or a 2.64% decrease at 12:30 PM on the NSE. The previous close was at ₹5,663.30, and the stock opened at ₹5,700.00, reaching a high of ₹5,728.85 and a low of ₹5,490.10. The stock is currently priced at ₹5,513.55. 

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