Information technology company Persistent Systems Ltd said Thursday it has agreed to acquire Palo Alto, California-based Capiot Software Inc. and its subsidiaries in Australia, India and Singapore.
The acquisition will strengthen Persistent’s enterprise integration capability with Capiot’s strong track record of offerings using TIBCO, MuleSoft and Red Hat platforms, the Indian company said in a statement.
Persistent will acquire Capiot in two stages. It will first take over the US company’s India unit Capiot Software Pvt. Ltd. In the second stage, it will purchase the US company and its units in Australia and Singapore.
The IT firm will pay $5.45 million (about Rs 40 crore) for Capiot’s India operations and $0.89 million (about Rs 6.5 crore) for its US business. The deal is likely to close in two to four weeks’ time.
Capiot was founded in 2014. It reported consolidated revenue of $6.28 million for 2019‐20.
Persistent posted a 9% rise in net profit for the April-June quarter to Rs 90 crore from Rs 82.47 crore a year earlier. Revenue increased 17% to Rs 1,012 crore.
Persistent Systems was founded in 1990 by IIT Kharagpur alumnus Anand Deshpande, who is the company’s chairman and managing director. The company develops software solutions for the telecom, banking and financial services, life sciences and healthcare sectors.
The mid-sized IT services provider has made several acquisitions earlier. The Capiot acquisition comes after a year of its last deal.
In June last year, Persistent Systems announced the purchase of European Salesforce consulting partner Youperience GmbH for up to 6.8 million euros (about Rs 54 crore then) in cash.
In September 2018, it had announced the acquisition of US-based startup Herald Technologies Inc., which operates under the name Herald Health, at an enterprise value of $5.2 million (Rs 37 crore then) in cash.
In July 2018, Persistent invested an undisclosed sum in US-based big data firm Cazena as part of a $10 million funding round.
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.