Persistent Systems saw its share price increase by as much as 1 percent on September 30 amid a muted market, bucking the trend of declines in other major IT stocks. The gain follows Persistent Systems’ announcement of a small acquisition in the AI space -- the acquisition of Pune-based firm Arrka, which specialises in data privacy and AI governance.
Persistent Systems stock was trading at Rs 5,465, up 0.5 percent from the previous close, after climbing to the day’s high of Rs 5,494.
The acquisition, announced on September 30, 2024, positions Persistent Systems to enhance its capabilities in digital governance, including data privacy and responsible AI. It is a strategic move aimed at integrating Arrka's Data Privacy Management platform into Persistent Systems’ existing AI-led services.
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The acquisition is priced at Rs 14.4 crore, including an upfront payment of Rs 10.3 crore and an earnout of Rs 4.1 crore contingent on performance. This amount is comparatively small relative to Persistent Systems’ market capitalisation of Rs 85,000 crore.
Arrka reported a revenue of Rs 2.9 crore for FY 2024. Persistent Systems said that Arrka is known for its decade-long expertise in the data privacy domain. The acquisition complements Persistent Systems’ offerings that address data privacy and compliance in the age of AI, it said.
Persistent Systems’ share price has nearly doubled in the past year, gaining 90 percent, significantly outperforming the benchmark NSE Nifty 50, which has increased by 34 percent during the same period.
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