Shares of Persistent Systems Ltd surged 3% and hit a 52-week high of Rs 4,760 on 4 July after the company acquired US-based Starfish Associates for a total consideration of $20.7 million. 

The acquisition will help the company build its engineering capabilities and expand its AI-driven business transformation. 

Sandeep Kalra, chief executive officer and executive director of Persistent Systems, 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.”

The total cost of the acquisition is around $20.7 million and comprises an upfront payment of $15.4 million to shareholders, which is subject to customary adjustments for working capital, debt, and cash at closing and a maximum cumulative earn-out of $5.1 million to eligible sellers over the next two years. 

The deal will be executed over the next four to six weeks, subject to the satisfaction of customary closing conditions. 

At 3:30 pm, the shares of Persistent Systems closed 3.63% higher at Rs 5,759.95 on NSE.