Persistent Systems Limited — M&A Activity 2018

Sep 27, 2018

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				Annexure I
	Sr.No.	Particulars		Details
	1.	FullNameof the entitytobeacquired, details inbriefsuchassize,turnover etc.		•Acquisitionofselected contractsandemployees("Assets")fromAboveSolutions India Private Limitedanditsaffiliates ('Above Solutions').•Sincethisisan'Asset Acquisition'andnot'Entity Acquisition',weunderstand thatdetails in briefsuchassize,turnover etc.ofAbove Solutionsarenot requiredtobedisclosed.
	2.	Whether the acquisition would fall withinrelated party transaction(s)andwhether thepromoter/ promoter group/ group companieshaveanyinterest in the entity being acquired?Ifyes,natureofinterestanddetails thereofandwhether thesameisdone at "arm's length"		Theacquisition does not classifyasa RelatedParty Transaction.ThePromoter/ Promoter Grouphasnointerest in theAssetsbeing acquired.
	3.	Industrytowhich the entity being acquiredbelongs		Thesecontractsareforproductdevelopment.
	4.	Objectsandeffectsofacquisition (including butnot limited to, disclosureofreasons foracquisitionoftarget entity,ifits businessisoutside the main lineofbusinessofthe listedentity)		Theacquisition will extend our business inline with our current business.
	5.	Brief detailsofanygovernmental or regulatoryapprovals required for the acquisition		Nogovernmental or regulatory approvalsarerequired for the acquisition.
	6.	Indicative time period for completionoftheacquisition		•AnAsset Purchase Agreementhasbeenexecutedwith Above SolutionsonSeptember27,2018.•Itisexpectedthatemployees will joinandcontracts willbetransitionedtoPersistent over the next60days.Oncethese activitiesarecompleted, theacquisition willbecompleted ("Closing").
	7.Natureofconsideration-whethercashconsideration or share swapanddetailsofthesame1			UponClosingofthetransaction,the consideration paid willbeincash.
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	Sr.No.	Particulars	Details	Details
	8.	Costofacquisition or the price at which thesharesareacquired	Themaximumpurchaseconsiderationpayable for the acquisitionoftheAssetsisUS$ 0.9Mn,subjecttocustomary
			adjustm~ntsfor working capital.Thisvalueisbrokenupasfollows:•MaximumupfrontpaymentofUS$ 0.45MnonClosingofthetransaction•MaximumdeferredpaymentofUS$ 0.45Mnaftera periodof12monthsbasedonachievementofcertain revenue targets
	9.	Percentageofshareholding_I_control acquiredand/or numberofsharesacquired	NosharesofAbove Solutionshavebeenacquired. OnlyAssets,asdiscussed above,willbeacquired.·1·-·..
	10.	Brief background about the entity acquired intermsofproducts/lineofbusiness acquired,dateofincorporation, historyoflast 3 yearsturnover, countryinwhich the acquired entityhaspresenceandanyother significantinformation (in brief)	•Incorporated in 2008inIndia, AboveSolutions IndiaPvt.Ltd.isa boutiquesoftware development companybasedoutofBengaluru, India. Persistentisacquiringselectedcontractsandemployees from Above Solutions.•Sincethisisan'Asset Acquisition'andnot'Entity Acquisition', we understand thatthe dateofincorporation, last threeyears'turnoverandgeographicalpresenceofAbove Solutionsarenotrequiredtobedisclosed.•Persistentisacquiring selected contractsand related employeesofwhich theassociated revenue willbea maximumofUS$2.1 Mn per annum.

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