IT services company Persistent Systems announced on Thursday that it would form a joint venture with US-based Sprint Nextel. Persistent Systems’ joint venture with USA’s third largest wireless provider will provide national and international long distance internet services and managed network services in India.

Sprint International Holding will own 74 per cent of the joint venture and its investment is subject to approval of the Indian Foreign Investment Promotion Board, a company release said. The present limit for foreign investments in telecom services is 74 per cent. The operations of the JV are expected to commence after regulatory clearances.

Anand Deshpande, chairman and managin director of Persistent Systems, said in a statement: “Sprint is a technology leader in the wireless and wireline operations and we believe that through this joint venture, we will be able to better service Sprint’s customers who are keen to grow their businesses in India. Telecom business is a growing segment for Persistent and our strategic partnership with US-based Sprint Nextel further strengthens our position in our business.”

Persistent Systems’ telecom business unit focuses on three sub-verticals namely, internet protocol communications, OSS/BSS (operations support systems/business support systems) and mobility. The company presently has over 5,400 employees offering outsourced product development services.

The company has delivered over 3,000 software product releases in the last five years and has about 290 customers. For the year 2009-10, Bombay Stock Exchange and National Stock Exchange listed Persistent Systems reported revenues of Rs 504.41 crore with net profits of Rs 117.05 crore.