IT services and business process outsourcing (BPO) provider Zensar Technologies said it has acquired 100% stake in US company Akibia (formally PSI holdings) for $66 million (around Rs 300 crore) in an all-cash deal. The deal would be funded partially through internal accruals and debt that would be raised by the company in the US.
Akibia is an infrastructure service provider that caters to clients in the US and European markets with offerings like consulting, data centre management and information security.
The acquisition would help Zensar cater to big ticket end-to-end infrastructure management contracts with on-site focus as Akibia has about 295 employees based in the US and 30 in Europe, Middle East and Africa. Akibia would operate as an independent business unit and Zensar would additionally pay compensation to senior executives of Akibia on achievement of stipulated targets like increase in revenue by 10-12% from the existing base levels.
Infrastructure management contributes less than 10% to the overall revenues of Zensar. Ganesh Natarajan, vice-chairman and MD, Zensar Technologies, said, ?with this acquisition in place, the onsite presence would help us bid for large contracts which we have not been able to, due to lack of strong presence in the US in this particular space. At the same time, it helps us cater to the ongoing employment generating issues in the US market.? The firm expects infrastructure management to contribute about 30% of the overall revenues in the coming three years, he added.
This could also be through an additional acquisition in this space. Harsh Goenka, chairman of RPG and Zensar, said, ?We are looking at an additional acquisitions in niche spaces including infrastructure management, business intelligence and BPO (manufacturing and insurance) across Latin America and Europe.?