Persistent Systems Ltd has acquired US-based startup Herald Technologies Inc., which operates under the name Herald Health, at an enterprise value of $5.2 million (Rs 37 crore) in cash.
The enterprise value is subject to customary adjustments for working capital, the Pune-headquartered software services company said in a stock-exchange disclosure.
The deal involves an upfront payment of $2.3 million to Herald's shareholders. The remaining $2.9 million is payable to management employees over a three-year period and depends on the performance and retention of those employees.
Persistent said the deal will strengthen its intellectual property-led offerings in the healthcare domain and create cross-sell opportunities.
Herald Health has developed a software platform and customisable healthcare protocols that augment existing workflows in hospital operations. It offers clinicians real-time access to clinical data.
Incorporated in 2015, Herald Technologies was founded by Bradford Diephuis and Andrew Hillis. Diephuis is a trained doctor and also holds a master’s degree in computer science. Hillis is a health economist and data scientist. He holds a PhD in business economics from Harvard University.
Herald Health was incubated at the Harvard Innovation Labs, according to Harvard’s website. Its revenue was around $65,000 for the year ended April 2018.
Persistent Systems was founded in 1990 by IIT Kharagpur alumnus Anand Deshpande. It develops software solutions for the telecom, banking and financial services, life sciences and healthcare sectors.
The company has struck a number of deals in recent years. In July, for instance, Persistent invested an undisclosed sum in US-based big data firm Cazena as part of a $10 million funding round.
In August 2017, Persistent acquired Swiss firm Parx Werk AG to strengthen its expertise in Salesforce software. In 2016, it had bought Australia-based PRM Cloud Solutions.
In 2015, Persistent had made two acquisitions. It bought Irish technology firm Aepona Holdings Ltd and US-based software company Akumina Inc’s content management services business.