[Software] Persistent to acquire US-based Capiot Software for $6.34 million

[AL_MAOT]

 

Pune: Persistent Systems NSE 0.51 % will acquire Capiot Software and its subsidiaries in India, Australia and Singapore, the Pune-based IT services provider said on Thursday.

Persistent will pay $5.45 million for the Palo Alto, California-based Capiot’s India operations and $0.89 million for its US business, it said. The deal is expected to close in two to four weeks.

Capiot, founded in 2014, specializes in enterprise integration with expertise in MuleSoft, Red Hat and TIBCO. It also delivers enterprise modernization, with advanced proficiency in key partner platforms, frameworks and industry data models.

During financial year 2019-20, Capiot had consolidated revenues of $6.28 million.

“For enterprise IT to succeed in advancing business goals and sales, it must have a central integration platform to work across disparate applications and data sources. Capiot’s singular focus in enterprise integration with key platform players like MuleSoft and TIBCO coupled with proprietary frameworks and common data models have accelerated implementations, with many successful rollouts,” said Sandeep Kalra, President, Persistent Systems.

“Their strong history in enterprise integration will provide many of our clients an immediate benefit and will help us solidify our Salesforce ecosystem capabilities,” he added.

The acquisition further strengthens Persistent’s ability to provide enterprise integration strategy and advisory services to guide clients with their integration strategy, platform choice, and roadmap to meet business goals.

It will also help in API-led integrations using specialists in the leading integration platforms coupled with frameworks and industry-specific common data models designed to accelerate business outcomes, and provide integration services to support changing business needs and innovation.

Following the acquisition, certain key Capiot consultants and employees will be eligible for an additional deferred income of a cumulative maximum amount of $1 million per year over the next three years, contingent on retention of such employees and achievement of targets, and additional incentive of a cumulative maximum of $1 million in the first year for achieving certain revenue targets.

Vasudeva Anumukonda, CEO of Capiot Software, said, “Since our inception, Capiot has been committed to delivering the best outcome for our clients in the area of enterprise and data integration. We are excited to become part of Persistent Systems and to bring our expertise in integrating cloud applications and our data API-fication offerings to further augment Persistent capabilities and to accelerate the outcome for our clients, providing broader solutions in an ever-changing landscape.”