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Persistent Systems Inc, USA (wholly-owned subsidiary of Persistent Systems) has entered a stock purchase agreement to acquire Starfish Associates, LLC, USA. New Jersey-based Starfish is focused on unified communication and contact centre technology domain, providing enterprise communication solutions to large enterprises, including Fortune 500 companies.

Persistent Systems Inc will acquire a 100% stake in Starfish for $20.7 million. This includes an upfront payment of $15.4 million and an earnout of $5.1 million over the next two years, contingent on achieving certain performance thresholds. There will be a retention payment for key employees of $0.2 million over the next two years. The acquisition would be completed within four to six weeks.

Starfish had revenue of $8.2 million (last twelve months) as of March 31, 2024. It has built an automation platform that helps enterprises streamline the management of communication systems. It allows enterprises with automated provisioning, self-service, resource management and migration tools.

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This strategic acquisition builds on Persistent’s existing engineering capabilities in the contact centre and unified communications space, expanding its strong AI-driven business transformation capabilities, the company said. Sandeep Kalra, CEO and executive director, Persistent, said the integration of Starfish Associates’ platform enhanced their unified communications and contact centre management offerings as this industry was undergoing significant disruption on the back of AI-led innovations. 

Joining forces with Persistent presents a new chapter for us, on one hand augmenting our capabilities in integration, automation, and AI-driven contact centre transformation, and on the other hand, giving us access to Persistent’s strong customer base, Robert Hankin, co-founder and partner, Starfish Associates

David Raanan, co-founder and partner, of Starfish Associates, said their platforms and solutions aligned perfectly with Persistent’s strategic objectives.

The Starfish platform is an intelligent integration hub and workflow engine, that facilitates, seamless connections across business applications and communication systems. It enhances multi-vendor communication management through automation with platforms such as Amazon Connect, Avaya, Cisco, Genesys, and Microsoft Teams. In addition, it integrates with key business applications like ServiceNow, Workday, and Microsoft Active Directory to streamline workflows and operations.