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Persistent Systems - Capability-Based Strategic Acquisitions To Drive Growth: Axis Securities

Persistent Systems - Capability-Based Strategic Acquisitions To Drive Growth: Axis Securities

A stream of binary coding, text or computer processor instructions, is seen displayed on a laptop computer screen as a man works to enter data on the computer keyboard (Photographer: Chris Ratcliffe/Bloomberg)
A stream of binary coding, text or computer processor instructions, is seen displayed on a laptop computer screen as a man works to enter data on the computer keyboard (Photographer: Chris Ratcliffe/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Axis Securities Report

Persistent Systems Ltd. on September 30, 2021 announced entering into an agreement to acquire Charlotte, North Carolina-based Software Corporation International and its affiliate, Fusion360, as well as the business of East Brunswick, New Jersey-based Shree Partners including its subsidiary in India.

The acquisition is in line with Persistent Systems’ vision of achieving deeper penetration in the industry verticals, bolstering service lines, and expanding its geographic footprint.

The acquisition is expected to be completed in the next three-five weeks and will be 50-75 basis points dilutive at FY22 Ebit levels.

If synergies play out as per the management’s expectations, margin neutrality will be achieved much faster.

The leadership of the acquired companies will continue unchanged.

Click on the attachment to read the full report:

Axis Securities Persistent Systems - Company Update.pdf

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