Persistent Systems share price rises 4 per cent on strategic acquisitions

Acquisitions to serve as the foundation of a dedicated Persistent’s Payments business unit

Shares of IT services provider Persistent Systems were trading higher by 4 per cent intraday on Wednesday after the company entered into an agreement to acquire US-based Software Corporation International (SCI) and its affiliate, Fusion360, and the business of East Brunswick, New Jersey-based Shree Partners including its subsidiary in India. 

SCI is a leading services provider of payment systems services including, consulting, implementation, and managed services. It has an impressive portfolio of leading US Banks. Meanwhile, Fusion360 provides application development, maintenance, and support for leading Payment platforms including IBM’s Financial Transaction Manager (FTM). 

The acquisition of SCI is expected to serve as the foundation of Persistent’s dedicated payments business unit. According to Everest Group, the Payments IT services market is expected to grow by 12.5 per cent in 2021 to reach USD 16.8 billion. 

Persistent has reported reasonably decent performance in Q1FY22 and has also shown strong consistent top-line and bottom-line growth. Growth in Q1FY22 was led by strong growth in Healthcare and BFSI industry verticals which grew by 15.5 per cent and 11.8 per cent respectively on a QoQ basis. The order booking for the quarter ended June stands at USD 244.8 million TCV. 

At 11.30 am on Thursday, the stock of Persistent Systems Limited was trading at Rs 3,687.35, up by 4.04 per cent or Rs 143.25 per share, against a 0.10 per cent gain in the benchmark index. The 52-week high of the company was recorded at Rs 3,838 while its 52-week low is Rs 1,075 on BSE.