Persistent Systems is set to expand business from Europe with the acquisition of PARX, a Zurich-based Salesforce partner which has business across Switzerland, Germany and Austria. Anand Deshpande, CMD, Persistent Systems, said the acquisition was done at CHF 8.5 million with the remaining CHF 7.5 million to be paid in the next two to three years. Europe is the second largest market for the company after US and currently accounts for 5.5% of Persistent business which is around $ 25 million. PARX’s annual turnover is around $8 million and is expected to grow further. “This gives us additional footprint in Europe to do other business. Parx has a team of 80 people and adds to Persistent’s Salesforce practice and we will also look to grow the business beyond salesforce and go digital,” Deshpande said. It is not easy to build a team of 70 to 80 people in German speaking markets, which the PARX acquisition has done for them, he said.Prior to this, Persistent had a small presence in Munich through the IBM Watson alliance and Deshpande said Germany was a good place to be as Internet of Things was one of their identified growth areas for his company.
Deshpande said they will continue the strategy of acquiring small and pointed acquisitions specific to the needs for geographical expansion and in areas aligned to their focus areas such as digital, data, IoT and machine learning. The IBM alliance has led to opening of three new offices in the US and also in Mexico and Israel. The facility in Mexico benefits from the country having favourable status with US.