Persistent Systems Takes Over Palo Alto-based Capiot for $5.45 Million
IT major, Persistent Systems has announced that it is all set to take over Palo Alto-based Capiot. Persistent India would be acquiring 100 percent shares of Capiot Software, the Indian subsidiary of Capiot Software. As a result, Capiot Software would turn out to be a wholly-owned subsidiary of Persistent Software.
Persistent Systems, would not just acquire the shares of Capiot Software in India, but, it would also take over Capiot Software’s Singapore and Australia subsidiaries. Therefore, Capiot US would become a wholly-owned subsidiary of Persistent Software.
Furthermore, the deal is considered to be $5.45 million for the acquisition of Capiot India. While, the acquisition of Capiot is estimated to be $0.89 million, subject to customary adjustment for working capital, debt, and cash on closing.
Commenting on the acquisition, Sandeep Kalra, Executive Director and President, Persistent Systems says, "Their strong history in enterprise integration will provide many of our clients an immediate benefit and will help us solidify our salesforce ecosystem capabilities. We look forward to welcoming CAPIOT employees, clients, and partners to our family."
Vasudeva Anumukonda, Chief Executive Officer, CAPIOT Software, states, “Capiot has been committed to delivering the best outcome for clients in the area of enterprise and data integration.” He adds, “We are excited to become part of Persistent Systems and to bring our expertise in integrating cloud applications and our data APIfication offerings to further augment Persistent capabilities and to accelerate the outcome for our clients, providing broader solutions in an ever-changing landscape.”
Alongside this, a few key employees and consultants of Capiot India and Capiot US would be eligible for an additional deferred income of a cumulative maximum amount of $1 million per annum for the next three years. This step has been announced with the intention to retain such prominent employees and consultants and motivate them to focus on achieving certain earnout targets.
Thus, it is to be expected that all the customary closing conditions and the share acquisition by PSI and PSL would be achieved in the following 24 weeks.
Capiot was incorporated in 2014, as a middleware led data consultancy and integration specialist. The company offers enterprise integration services by leveraging various integration platforms including TIBCO, Red Hat, MuleSoft, and other open-source platforms. Presently, the company revenues of more than 50 percent from BFSI customers.