Persistent Systems To Buy ‘Select Assets’ Of SoHo Dragon Solutions For Rs 50.86 Crore
The acquisition of SoHo Dragon assets by Persistent Systems includes an upfront payment of $3.19 million, with performance-linked payments over three years.
Persistent Systems Ltd. on Monday said that it will acquire “select assets” from SoHo Dragon Solutions India Pvt. for a total purchase consideration of $5.94 million (Rs 50.86 crore).
According to the exchange filing, Persistent has entered into an asset Purchase Agreement with M/s. SoHo Dragon Solutions India Pvt. on Jan. 6, 2025, to acquire select assets from Soho.
The Pune-based company expects the acquisition of assets to be completed within 4-8 weeks, subject to satisfaction of customary closing conditions.
The annual revenue of SoHo from these assets is estimated to be $4.9 million. It provides IT services to companies in the banking, financial services and insurance domains.
The filing added that the acquisition of select assets will help Persistent consolidate its relationship with a strategic and large customer in the BFSI domain.
The assets being acquired include select employees, contractors and a customer contract.
The $5.94-million deal includes an upfront payment of $3.19 million. Of the total, $2.48 million will be done over a period of three years. However, this balance payment will be made only on achievement of certain performance thresholds. It will also pay an amount of $0.27 million towards retention of a few key employees.
Persistent Systems clarified that shares of Soho are not involved in the transaction, as only select assets will be acquired by it.
It also added that it is not a related party transaction, and the promoters and promoter group of Persistent Systems do not have any interest in the said transaction.
Shares of Persistent Systems Ltd. closed 1.55% lower at Rs 6,305.10 apiece on the BSE, compared to a 1.59% decline in the benchmark Sensex.
