Persistent Systems acquired US-based MediaAgility and its subsidiaries for nearly $ 72 million. The deal includes an upfront payment of $ 53.25 million to shareholders of MediaAgility.

According to reports, Persistent Systems will also pay $ 17.75 million earn out to eligible shareholders of MediaAgility and a retention payment, with certain key employees eligible for an aggregate amount of $0.71 million over the next two years contingent on employment continuity.

Persistent Systems shares closed nearly three percent higher at Rs.4, 483 apiece on NSE as per reports.

The acquisition is likley to be completed within six-eight weeks or before, as per reports.

According to reports, the acquisition will enhance Persistent’s partnership with Google and will be the foundation for a dedicated Google business unit, enables verticalised solutions around the Google cloud ecosystem, in-line with strategy to add relevant skills across key hyperscaler partners.

Sandeep Kalra, CEO, Persistent Systems says, “we are seeing rapid growth in cloud adoption across industries, and we continue to make investments to better serve our clients on their ever-evolving digital journey. The acquisition of MediaAgility builds on our existing partnership with Google and lays the foundation for a dedicated Google business unit that will enable verticalized solutions, continuing Persistent’s strategy to add relevant skills across key hyperscale partners. Together, we look forward to unleashing Persistent’s full potential across our client base.”

Rajesh Abhyankar, Chief Executive Officer and Cofounder, MediaAgility says, “at MediaAgility, we’ve focused on building end-to-end cloud-native engineering capabilities on the Google Cloud Platform. With the growing demand for our services, we were looking to scale globally at a much faster rate. Persistent shares our vision for driving transformation for clients in the new multicloud world. I am excited to help create and lead the new Google business unit at Persistent based on our capabilities and thriving Google Cloud partnership.”

Found in October 2009, MediaAgility Inc. is a global cloud transformation services provider with deep expertise in building scalable, cloud-based solutions as a Google Cloud Premier Partner. It provides cloud-native application development and modernization, analytics and AI, cloud engineering, migrations, and managed services to its enterprise service clients across the globe. It has presence in US, India, UK, Mexico and Singapore.