Persistent Systems Acquires Infospectrum

Persistent Systems (BSE & NSE: PERSISTENT), a leader in outsourced software product development (OPD) services, today announced that it has entered into a definitive agreement to acquire the OPD business of Infospectrum, Inc and its subsidiary – Infospectrum India Private Limited.

Persistent Systems’ acquisition of Infospectrum’s business will contribute to the Company’s strategic thrust by providing better customer foothold in domains identified by them as their growth areas. This acquisition will enable Persistent Systems to further tap the European markets and provide access to customer’s from verticals like aerospace and defense, complex manufacturing, maritime, transportation and logistics, satellite imaging and geographic information systems.

Persistent Systems is confident that this acquisition would augment the Company’s delivery organization in Nagpur for leveraging its growth plans. With this acquisition, the Company’s Nagpur development center will be 800+ people strong with the Company on-boarding approximately 200 experienced software professionals from Infospectrum, India.

Elaborating on the acquisition, Dr. Anand Deshpande, Chairman and Managing Director, Persistent Systems said, “We are very excited about this acquisition. Infospectrum is already a well-established player in the market and Jay and his team has done a phenomenal job in building the company. We are very happy to welcome them in the Persistent family. Infospectrum has customers in different geographies and domains which are complementary to Persistent and would be good growth drivers for us.”

Dr. Deshpande further added, “We believe that with our focus areas –cloud computing, collaboration, analytics and mobility, we will be able to provide larger value and growth to Infospectrum‘s customers and employees. We are focused on growing our centers in smaller locations and we believe that this acquisition allows us to scale our business in Nagpur, it being a strategic location for us.”

“We have admired Persistent Systems’ growth as an OPD Company and are delighted to be part of the organization which is a leader in this space. Being part of Persistent Systems will enable us to provide better, faster and efficient services to our existing and potential set of customers”, said Jayant (Jay) Chopde, CEO of Infospectrum’s India operation.

As part of the integration of the two businesses, Mr. Jayant (Jay) Chopde, the present CEO of Infospectrum India would join Persistent Systems operations along with Mr. Nitin Nistane, COO and Mr. Anand Aurangabadkar, CFO of Infospectrum India. Jay will augment the sales efforts while Nitin and Anand would be part of the operations and support functions respectively. The closing of the transaction is subject to customary approvals and satisfaction of other customary conditions. The transaction is expected to close during this financial quarter.