Persistent Systems has announced its intention to acquire Starfish Associates.
Reports suggest that the deal could close within four to six weeks and cost Persistent $20.7MN
In acquiring Starfish, the digital engineering and enterprise modernization juggernaut will increase its presence across the contact center and unified communications space.
After all, Starfish is best known for its enterprise communications automation platform, which is leveraged by “many Fortune 500 companies”.
In delivering this platform, Starfish brings not only business transformation capabilities but also expertise in supporting large-scale customer experience operations.
As Dave Michels, Lead Analyst at TalkingPointz, stated upon the announcement:
The beautiful thing about owning Starfish is it comes with a seat at the table at many of the largest and most sophisticated contact centers in the world.
Persistent Systems will further support this scale, with the business already employing a global team of 23,000+ employees in 20 countries.
That team supports many contact center operations but will now do so with more might.
Indeed, with the Starfish platform, many of its clients will soon leverage an intelligent integration hub and workflow engine that facilitates “seamless” connections between well-utilized solutions within the CX ecosystems.
These include Amazon Connect, Avaya, Cisco Webex, Genesys, and Microsoft Teams.
Yet, in addition to enabling integrations and automations between these technologies, Starfish creates links between these tools and broader enterprise applications.
For instance, Starfish connects those CCaaS and UCaaS platforms with Microsoft Active Directory, ServiceNow, and Workday, helping to streamline operations in the contact center and beyond.
Thrilled to bring these new possibilities to clients, Sandeep Kalra, CEO & Executive Director at Persistent, stated: “The integration of Starfish Associates’ platform greatly enhances our unified communications and contact center management offerings as this industry undergoes significant disruptions on the back of AI-led innovations.
This innovation paves the way for us to support our global clients to unlock the full potential of these innovations in their contact centers.
Philip Fersht, CEO & Chief Analyst at HFS Research, supported this sentiment while praising Persistent’s “industry-leading” growth and “distinct culture”.
He also highlighted the “synergies” between the two businesses and the “immediate” benefits of the acquisition for Persistent’s existing clients. These promise position the firm “aggressively” within the customer experience market.
In summary, Ferscht stated:
With the acquisition of Starfish Associates, Persistent is positioned to disrupt the unified communications and contact center space.
The stock market seems to agree, with Persistent Systems’ share price reaching an “all-time high” upon the announcement. It’s also up over 30 percent year-to-date.
Indeed, the platform seems to blend well with not only the existing expertise at Persistent and its client base but also its own AI-powered automation capabilities.
By merging these functionalities, the company aims to support more agile, dynamic business environments through enhanced workflow efficiencies.
Inspired by that mission, Robert Hankin, Co-Founder & Partner of Starfish Associates, said:
Joining forces with Persistent presents a new chapter for us, on one hand augmenting our capabilities in integration, automation, and AI-driven contact center transformation, and – on the other hand – giving us access to Persistent’s strong customer base.
Lastly, the move marks the latest in a string of M&A moves across the customer experience industry in 2024, with many more touted for later this year.
Indeed, Google is reportedly in talks with HubSpot for a takeover, while Salesforce—after its failed bid for Informatica—appears to be looking for a company that can bolster its data management and integration capabilities.
