Persistent Strengthens Data Privacy with INR 14.4 Crore Acquisition of Arrka The acquisition enhances Persistent's AI-led, platform-driven services and strengthens its ability to provide comprehensive offerings in digital governance, including data privacy, AI governance, and cybersecurity, among others.

Persistent Systems, a global player in digital engineering, said it will acquire Pune-based data privacy firm Arrka for INR 14.4 crore. The acquisition is expected to be completed within the next 4-6 weeks.

The amount includes an upfront payment of INR 10.3 crore subject to customary adjustments for debt and cash on closing. Founders will be eligible for a maximum cumulative earnout of INR 4.1 crore over the next two years. This amount is contingent on achievement of certain performance thresholds.

"This strategic acquisition significantly enhances Persistent's AI-led, platform-driven services and strengthens its ability to provide comprehensive offerings in digital governance, including data privacy, AI governance, and cybersecurity, among others. With Arrka's expertise, Persistent will help clients accelerate their transformation journeys while ensuring ethical, responsible, and compliant AI," the company said in a statement.

Founded in 2012, Arrka provides data privacy consultancy services and it clocked INR 2.9 crore in revenue during FY24.

With the widespread adoption of AI, implementing and managing digital governance in general and data privacy and responsible AI are taking center stage for enterprises across industries. Persistent is addressing the opportunities in AI through strategic investments in innovative platforms like SASVA, an in-house cutting-edge platform using generative and deterministic AI, as well as through tuck-in acquisitions such as that of Starfish Associates in July to strengthen its position in AI-powered Contact Center and Unified Communications.

The integration of Arrka is expected to be a critical component in scaling Persistent's AI practice and addressing the rising demand for digital governance. It is a key to the Company's strategy to deliver responsible, ethical, and comprehensive platform-driven digital solutions.
Arrka's Data Privacy Management platform enables organizations to manage their data privacy risks and comply with multi-jurisdictional legal and regulatory requirements in an integrated manner. Persistent will integrate and significantly broaden Arrka's offerings to establish deep capabilities across the digital governance and trust domain.

"Arrka's acquisition perfectly aligns with our vision to deliver AI-driven services that fuel innovation and ensure data privacy, ethics, and compliance at every stage. By integrating Arrka's expertise with our AI-led, platform-driven services strategy, we are empowering businesses to innovate responsibly while managing risk and compliance more effectively. Their mature frameworks and Data Privacy Management platform provide a scalable foundation to ensure this new capability is platform-driven and embeds governance from the outset, which is now critical for successful AI implementations," Sandeep Kalra, Chief Executive Officer and Executive Director, Persistent.

Commenting on the relevance of the acquisition, Chirag Mehta, Vice President and Principal Analyst, Constellation Research said, "As customers accelerate their adoption of AI, the urgency to address data privacy and compliance challenges has never been greater. Persistent's acquisition of Arrka strengthens its AI-led, platform-first approach, empowering customers to confidently pursue their business goals while tackling these critical security concerns head-on."