Zensar targets 50% growth, earmarks R100 crore for acquisitions

Written by Kirtika Suneja | Mumbai | Updated: Feb 16 2012, 06:16am hrs
Mid-tier information technology (IT) firm Zensar Technologies has earmarked R100 crore for acquisitions this year besides a growth rate of 50% fuelled by inorganic expansions. The company has R200 crore of cash at present and is scouting for acquisitions in the $25 million.

We expect revenue growth of almost 50% because of acquisitions. We are looking at $25 million buys in the US for SAP and infrastructure management in Europe, said Ganesh Natarajan, vice-chairman and MD, Zensar. The company clocked revenues of R480.83 crore, up 85.6 % and net profit after tax of R52.29 crore for the quarter ended 31 December, 2011.

Infrastructure management services contribute 35% to the firms revenues and Zensar has a deal pipeline of $400 million. Adding that Zensar is not looking for a big ticket acquisition, Natarajan added that compliance companies are also on its radar.

The company acquired IT solutions provider Akibia in 2010 for $66 million for offering infrastructure management, information security and analytics.