Persistent Systems Share Price Update: Significant Gains Despite IT Sector Challenges
Persistent Systems Shares Rise Amid Broader IT Downturn
Persistent Systems experienced a noteworthy increase in its share price, climbing by 1% on September 30, 2024, in a market overshadowed by declines in other major IT stocks. This uptick is attributed to the company’s announcement of a small but strategic acquisition in the AI space: the purchase of Pune-based Arrka, focusing on data privacy and AI governance.
Details of the Acquisition
The acquisition of Arrka was priced at Rs 14.4 crore, involving an upfront payment of Rs 10.3 crore and an earnout of Rs 4.1 crore based on performance metrics. This amount is quite modest compared to Persistent Systems' market capitalization, which stands at Rs 85,000 crore.
- Arrka's Revenue: Reported a revenue of Rs 2.9 crore for FY 2024.
- Market Performance: Persistent Systems’ share price has soared nearly 90% over the past year, vastly outperforming the NSE Nifty 50.
- Catalyst for Growth: This acquisition enables the integration of Arrka's Data Privacy Management platform, significantly enhancing Persistent Systems’ offer in AI-led services.
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