This multibagger IT company acquires US-based MediaAgility; do you own it?

The transaction is expected to add 3 per cent revenue in FY23

Persistent Systems provides software engineering and strategy services to help companies implement and modernize their businesses. Over the last one year, the company has returned 145.19 per cent to investors. The company's share price was Rs 1,826.55 on March 17, 2021, and it has boosted investor wealth by more than 2 times since then. 

Persistent Systems has announced the acquisition of US-based MediaAgility and its subsidiaries for nearly USD 72 million. The company will strengthen its relationship with Google as a result of this acquisition, which will serve as the cornerstone for a specialised Google business unit. The deal accelerates and deepens Persistent's Google Cloud competencies, and bolsters its vertical and industry solution capabilities within the Google Cloud ecosystem. The purchase is scheduled to be finalised in 6-8 weeks and does not require any government or regulatory approvals. The deal is expected to boost sales by 3 per cent in FY23, but it would dilute EPS by low single digits due to a 45-50 basis point EBITM impact (staff retention payment, amortisation charges) and reduced other income. 

Persistent Systems Ltd is an OPD speciality company, offering the customers the benefits of offshore delivery. The company designs, develops and maintains software systems and solutions, create new applications and enhances the functionality of the customers‘ existing software products. They deliver services across all stages of the product life-cycle, which enables them to work with a wide range of customers and allows them to develop, enhance and deploy their customers’ software products. The company is also engaged in the business of Telecom & Wireless, Infrastructure & Systems, Life Sciences & Healthcare. 

At 10:25 am on Thursday, the stock of Persistent Systems was seen trading at Rs 4,489.35, up by 1.37 per cent or Rs 60.85 per share. The 52-week high of the scrip is recorded at Rs 4,986.85 and the 52-week low at Rs 1,761.35 on the BSE.