Persistent Systems to acquire US-based Starfish Associates for $20.7 million

The deal is expected to complete over the next 4-6 weeks, subject to the satisfaction of customary closing conditions, the company said.

Persistent Systems intends to acquire New Jersey, US-based Starfish Associates for around $20.7 million, the Pune-headquartered mid-tier IT services company said on July 3. The acquisition will help build its engineering capabilities and also expand its AI-driven business transformation, the company said.

“The integration of Starfish Associates’ platform greatly enhances our unified communications and contact centre management offerings as this industry undergoes significant disruption on the back of AI-led innovations,” Persistent’s chief executive officer and executive director Sandeep Kalra said.

The overall acquisition size is of around $20.7 million, which includes upfront payment of $15.4 million to shareholders (subject to customary adjustments for working capital, debt and cash on closing) and $5.1 million in maximum cumulative earn out to eligible sellers over the next two years.

There will also be a retention payment component to certain eligible employees for an aggregate $0.2 million over the next two years contingent on employment continuity, the company said in regulatory filings.

The deal is expected to completed over the next four-six weeks, subject to the satisfaction of customary closing conditions, the company said.

Starfish Associates caters to the world’s largest enterprises including Fortune 500 companies. Its automation platform excels as an intelligent integration hub and workflow engine, facilitating seamless connections across a myriad of business applications and communication systems, the company said.

It also enhances multi-vendor communication management through automation with platforms such as Amazon Connect, Avaya, Cisco, Genesys, and Microsoft Teams.

The acquisition would pave the way for Persistent to support its global clients to unlock the full potential of the innovations in their contact centres, Kalra said.

“Joining forces with Persistent presents a new chapter for us, on one hand augmenting our capabilities in integration, automation, and AI-driven contact centre transformation, and on the other hand, giving us access to Persistent’s strong customer base,” Starfish Associates co-founder and partner Robert Hankin said.

At 11.14 am, Persistent Systems was trading at Rs 4,562.60 on the National Stock Exchange, up 1.35 percent from the previous close.