Zensar on Saturday said it will acquire US-based M3bi in a USD 30.6 million deal, a move that will help the Indian IT firm augment its thrust in data engineering, analytics, artificial intelligence/machine learning and advanced engineering services. Zensar Technologies Ltd will acquire the entire share capital of M3bi Pvt Ltd (M3bi India), and Zensar Technologies Inc will acquire the entire share capital of M3bi LLC, a statement said. This acquisition will be completely funded by internal accruals, it added.
Zensar, in a regulatory filing, said the transaction entails an “aggregate upfront payment of USD 21.60 million and performance-based deferred payments over 36 months not exceeding USD 9 million”.
The deal is expected to close on or before August 31, 2021 or upon fulfilment of closing conditions, whichever is earlier, it added. Post-acquisition, M3bi will continue to be managed by co-founders Anir Khandekar and Suresh Potluri.
Revenue from operations of M3bi, LLC was about USD 26.75 million for the calendar year ended December 31, 2020. M3bi was founded in April 2010 and is headquartered in Scottsdale, Arizona in the US. M3bi has 445 professionals across the US and India.
The addition of M3bi reinforces Zensar’s new strategy which focuses on areas of market opportunities that allow Zensar to concentrate organization resources, investments and alliances to deliver maximum business impact, Zensar said in its statement.
In particular, M3bi strongly augments Zensar’s thrust in the data engineering, analytics and AI/ML and advanced engineering services, it added. The acquisition will also add marquee clients to Zensar’s portfolio in Banking, Financial Services and Insurance, and other verticals, allowing Zensar and M3bi to jointly drive an expanded set of offerings to these global firms.
“We are reinforcing our strategic growth charter with the acquisition of M3bi. Our acquisitions in recent years have enhanced our competitiveness, bringing value to our customers. The team steered by Anir and Suresh brings a combination of capabilities and strong client relationships to our fold, Harsh Goenka, Chairman of RPG Enterprises and Zensar Technologies, said.
Ajay S Bhutoria, Chief Executive Officer and Managing Director of Zensar Technologies, said data engineering and analytics and advanced engineering are key strategic growth opportunities for the company.
“With the addition of M3bi’s capabilities, we will expand our offerings in this space to address the business-critical needs of our clients. Clients looking for large-scale digital transformation will be able to leverage our combined expertise,” he added.