Shares of Persistent Systems Ltd. are trading flat after reaching a day’s high of Rs 5,494.00 on 30th September, following the company’s announcement of a small acquisition in the AI space—the acquisition of Pune-based firm Arrka, which specialises in data privacy and AI governance.

This acquisition was announced today, allowing Persistent Systems to strengthen its digital governance capabilities, particularly in data privacy and responsible AI. It aims to integrate Arrka’s Data Privacy Management platform into the company’s existing AI-led services.

It is valued at Rs 14.4 crore, which includes an upfront payment of Rs 10.3 crore and an earnout of Rs 4.1 crore based on performance. This amount is relatively small compared to Persistent Systems’ market capitalization of Rs 85,000 crore.

Arrka reported a revenue of Rs 2.9 crore for FY 2024 and is recognized for its decade-long expertise in the data privacy field. The acquisition enhances Persistent Systems’ offerings related to data privacy and compliance in the era of AI.

So far in 2024, the stock has surged by almost 49%. As of now, the company’s market capitalisation stands at Rs 83,542 crore.

At 1:12 PM, the shares of Persistent Systems were trading 0.54% lower at Rs 5,407.40.

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