Persistent Systems Limited announced the execution of a Share Purchase Agreement (SPA) on March 31, 2026, for the transfer of its entire 100% stake in Persistent Systems Germany GmbH. The sale is part of an internal group restructuring, moving the subsidiary to Aepona Group Limited, Ireland. The transaction price for the transfer was set at EUR 20,878,597, concluded via a Share Swap Consideration, aiming for enhanced operational efficiency within the group structure.
Completion of Internal Group Restructuring
Persistent Systems Limited confirms the successful execution of the Share Purchase Agreement (SPA) on March 31, 2026, formalizing the transfer of its entire 100% shareholding in its wholly owned subsidiary, Persistent Systems Germany GmbH. This transfer moves the entity to Aepona Group Limited, Ireland, which is also a wholly owned subsidiary of the Company, positioning it as a step-down subsidiary. This move is categorized as a related party transaction conducted at arm’s length.
Financial Details of the Transaction
The agreed-upon cost for the acquisition of the shares was EUR 20,878,597. The consideration method employed was a Share Swap Consideration. Specifically, instead of a cash payment for the Purchase Price, the Company will be allotted an equivalent number of equity shares of Aepona Group Limited, as detailed in the SPA.
Target Entity Profile: Persistent Systems Germany GmbH
The entity being transferred, Persistent Systems Germany GmbH, is primarily engaged in software development and allied activities, having been established in November 2016. The subsidiary belongs to the ITES industry sector. Financial data provided for the last three completed fiscal years shows the following turnover:
- FY’25 Turnover: EUR 5,018,646
- FY’24 Turnover: EUR 6,156,527
- FY’23 Turnover: EUR 2,603,944
The Paid-up Capital of the German entity stands at Euro 16,727,520, with a reported turnover of EUR 5,018,646 as of the financial year ending FY25.
Rationale and Impact
The core rationale behind this restructuring is to achieve entity rationalization and operational efficiency within the broader Persistent group structure. The transaction is expected to be finalized by March 31, 2026, in strict accordance with the terms laid out in the SPA.
Source: BSE
