On 14 March 2022, Persistent Systems announced that it had entered into an agreement to acquire MediaAgility, a Princeton, NJ-based cloud transformation services company for $72m, representing an EV / Sales multiple of 2.8x based on CY 2021 financials.
MediaAgility is a Google Cloud Premier Partner and Persistent looks to establish a dedicated Google Cloud business unit with this acquisition as its foundation.
About Persistent Systems:
Persistent Systems is a leading global digital engineering and enterprise modernization company.
With over 16,500 employees in 18 countries, the company offers product engineering, platform integration and consulting, cloud, security, internet of things (IOT), data analytics services.
Founded in 2009, MediaAgility is a cloud transformation services company. It provides cloud-native application development and modernization, analytics and AI, cloud engineering, migrations, and managed services.
With over 35 enterprise service clients across the globe, the company recorded a revenue of $25.5m in CY 2021.
Headquartered in Princeton, NJ, it has over 500 employees across India, US, UK and Mexico.
A Google Cloud Premier Partner, MediaAgility has 31 Google Cloud Partner Expertise designations, over 330 Google Cloud certifications, and seven Google Cloud partner specializations.
The company has been recognized by Gartner as a Niche Player in the 2021 Magic QuadrantTM for Public Cloud IT Transformation Services.
Rationale of the transaction:
The transaction will enhance Persistent’s partnership with Google and will be the foundation for a dedicated Google business unit within Persistent.
It will enable Persistent to offer verticalized solutions around the Google cloud ecosystem, in-line with its strategy to add relevant skills across key hyperscale partners.
The acquisition comes at a time when Gartner forecasts a five-year CAGR of 20.7% for the public cloud services market.
With the increased demand for Google Cloud capabilities, MediaAgility will expand Persistent’s ability to execute cloud-based digital transformation journeys for its clients globally.
The transaction is expected to close within 6-8 weeks.
The Chesapeake Group was not an advisor in this transaction.