Norwest Venture Partners-backed Persistent Systems Ltd has struck a deal to acquire 'rCloud', an innovative cloud platform business of Doyenz, Inc. through its step-down subsidiary in the US, the company informed the Bombay Stock Exchange.
This is the second US acquisition by Persistent Systems. Earlier in Feb this year, Persistent Systems acquired location business of United States-based Openwave Systems Inc. for an undisclosed amount.
Founded in Nov 2007 by Ashutosh Tiwary and Przemek Pard, Doyenz is a privately held software company based in Bellevue, Washington. It provides a Cloud platform that meets the business continuity needs of small and medium-sized businesses.
Doyenz has raised $10 million so far from angel investors, including George Burns. Earlier this year, the company trimmed its UK operations and slashed some jobs, according to media reports.
Doyenz’s rCloud provides backup and disaster recovery for VMware environments allowing IT professionals to restore virtual environments in under fifteen minutes, providing quick access to business-critical applications.
Persistent's in-house team was involved in sewing the deal.
In Dec 2005, Norwest Venture Partners invested $18.8 million along with Gabriel Venture Partners in cumulative optionally convertible preference shares (CCPS) in Persistent Systems for an undisclosed stake, subject to customary conditions.
Persistent Systems operates as an outsourced software product development company globally and provides services like research, usability engineering, prototyping, development, testing and quality assurance, porting, documentation, training, sales support, product deployment, technical support, maintenance and performance engineering. It also designs, develops tests, deploys, supports and maintains software systems and solutions. The company was founded in 1990 by Anand Deshpande, a B. Tech in Computer Science and Engineering from IIT Kharagpur
Last April, Intel Capital, which invested about $1 million in company in 2000, exited the company. The company reported a net profit of Rs 41 crore on revenues of Rs 301 crore during the first quarter of the fiscal year ended June 30.
In 2011, Persistent Systems Ltd. acquired France-based software marketing and development business of Agilent Technologies Inc. and Nagpur-based Infospectrum India Pvt Ltd. The deal values were not disclosed.
(Edited by Prem Udayabhanu)