DBT Bureau
Bengaluru, 4 July 2024
Mid-tier technology firms in India are increasingly tapping the inorganic route to push up revenue growth.
This week, two domestic technology firms joined the league of other players in announcing acquisitions.
On Wednesday, Persistent Systems announced the acquisition of the US-based Starfish Associates for around $20.7 million. According to the Pune-headquartered firm, this acquisition bodes well for the company as it will build its engineering capabilities and expand its AI-driven business transformation.
“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,” Chief Executive Officer and executive director of Persistent Systems, Sandeep Kalra said.
Out of the total acquisition cost of about $20.7 million, an upfront payment of $15.4 million will be made to shareholders and a maximum cumulative earn-out of $5.1 million to eligible sellers over the next two years, the company said.
Similarly, Chennai-based digital analytics consulting & solutions company, LatentView has announced the acquisition of 70% stake in Decision Point for $39.1 million.
LatentView will acquire the remaining 30% equity in the business transformation and revenue growth management (RGM) solutions company over the next two years with a payout based on agreed valuation principles, the company said on Wednesday.
“Decision Point’s strength…opens new doors for LatentView. Over the last few months, we have had several engaging joint selling opportunities with Decision Point and are fully energised to drive synergistic growth,” said Rajan Sethuraman, chief executive officer (CEO) of LatentView, in a statement.
In recent quarters, mid-tier IT firms have been aggressive in M&A space as organic growth came down owing to low IT spending globally.
In May, Coforge said it would acquire 54% of ER&D firm, Cigniti Technologies for about $220 million. ITC Infotech announced the acquisition of Blazeclan Technologies for around $61 million. Similarly, Happiest Minds has announced the acquisition of PureSoftware for $94.5 million this year.
