IT company Persistent Systems to acquire Palo Alto-based Capiot

Persistent Systems. Photo: Wikipedia

IT firm Persistent Systems on Thursday said it will acquire Palo Alto-based Capiot.

Under the deal, Persistent Systems Ltd India (PSL) will acquire 100 per cent shares of Capiot Software - the Indian subsidiary of Capiot Software Inc and consequently, Capiot India will become a wholly-owned subsidiary of PSL, a regulatory filing said.

Persistent Systems Inc, USA (PSI) will acquire the shares of Capiot Software Inc along with its subsidiaries in Singapore and Australia, and consequently, Capiot US will become a wholly-owned subsidiary of PSI, it added.

"The purchase consideration payable for the acquisition of Capiot India is about USD 5.45 million and for the acquisition of Capiot US is about USD 0.89 million, subject to customary adjustments for working capital, debt and cash on closing," it said.

In addition to the purchase consideration, certain key employees and consultants of Capiot India and Capiot US will be eligible for an additional deferred income of a cumulative maximum amount of USD 1 million per annum over the next 3 years, contingent on retention of such employees and consultants as well as achievement of certain earnout targets.

These individuals will also be eligible for an additional incentive of a cumulative maximum amount of USD 1 million in the first year for achieving certain revenue targets, it said.

It is expected that all the customary closing conditions and the share acquisitions by PSI and PSL will be completed over the next 24 weeks.

"Their strong history in enterprise integration will provide many of our clients an immediate benefit and will help us solidify our salesforce ecosystem capabilities. We look forward to welcoming CAPIOT employees, clients, and partners to our family," Sandeep Kalra, Executive Director and President of Persistent Systems said.

Vasudeva Anumukonda, Chief Executive Officer of CAPIOT Software, said Capiot has been committed to delivering the best outcome for clients in the area of enterprise and data integration.

"We are excited to become part of Persistent Systems and to bring our expertise in integrating cloud applications and our data APIfication offerings to further augment Persistent capabilities and to accelerate the outcome for our clients, providing broader solutions in an ever-changing landscape," he added.

Incorporated in 2014, Capiot is a middleware led data consultancy and integration specialist. It provides enterprise integration services by leveraging various integration platforms including TIBCO, MuleSoft, Red Hat and other open-source platforms.

The company derives more than 50 per cent of its revenues from BFSI (banking, financial services and insurance) customers.

The standalone revenue of Capiot India in the financial year 2019-20 stood at Rs 41.3 crore, while the consolidated revenue of Capiot US (excluding Capiot India) was at USD 1.13 million in fiscal 2020.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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