Buzzing stock: Persistent Systems expands in Europe through acquisition

Persistent Systems is expanding its business in Europe by acquiring PARX, a Zurich based salesforce company. Parx operates its business across Switzerland, Germany and Austria. It has a team of 80 employees with annual turnover of $8 million. 

The acquisition was made for a consideration of CHF 16 million. Out of this, CHF 8.5 million would be paid upfront and remaining CHF 7.5 million would be paid in the next 2-3 years.

After the US, Europe is the next largest market for Persistent Systems and accounts for 5.5% of its revenue which is around $25 million. Through this acquisition, it has enabled the company to expand its base and grow beyond Munich in Europe.

For Q1FY18, revenue remained flat whereas margins have shown improvement. Operating profit margin rose from 17.3 percent to 24.1 percent QoQ and net profit margin improved from 12.5 percent to 17.9 percent on QoQ basis.

The stock closed at Rs 635.90 on Monday. Today it opened at Rs 635 and touched Rs 643, showing a rise of 1.12 percent.

Persistent Systems is a company involved in building software products and offers complete life cycle services.