Persistent Systems Limited - Oct 16, 2020 - Angel Broking

Mr. Jyoti Roy DVP - Equity Strategist, Angel Broking Ltd

"Persistent Systems Limited, India (PSL) has announced the acquisition of the entire business of Capiot Software Inc., USA and its Indian subsidiary in a series of transactions for a consideration of USD 6.34mn. Moreover certain key employees and consultants of Capiot India and Capiot US will be eligible for an additional deferred income of a cumulative maximum amount of USD 1mn per annum over the next 3 years, contingent to achievement of certain earnout targets. Furthermore these key employees will be eligible for an additional incentive of a cumulative maximum amount of USD 1mn in the first year for achieving certain revenue targets. During the Financial Year 2019‐20, Consolidated Revenues of Capiot Software Inc. was USD 6.28mn. The acquisition will strengthen Persistent's enterprise integration capability with Capiot's strong track record of offerings using TIBCO, MuleSoft and Red Hat platforms. We continue to remain positive on Persistent system post the strong set of numbers by other large cap companies like Infosys, TCS and Wipro especially given the company's very high exposure to the high tech. and emerging vertical which is witnessing strong demand growth."

Shares of PERSISTENT SYSTEMS LTD. was last trading in BSE at Rs.1286.55 as compared to the previous close of Rs. 1368.8. The total number of shares traded during the day was 63148 in over 1653 trades.

The stock hit an intraday high of Rs. 1385 and intraday low of 1260. The net turnover during the day was Rs. 83500121.

Source : Equity Bulls

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