Zensar Technologies Ltd has signed a definitive agreement to acquire US-based M3bi for an upfront payment of $21.60 million and performance-based deferred payments not exceeding $9 million over 36 months. The entire cash deal will be funded through internal accruals.
The acquisition would be conducted through the company’s US subsidiary, while Zensar Technologies will also acquire the US firm’s wholly-owned subsidiary M3bi M3bi India Pvt Ltd.
The addition of M3bi reinforces Zensar’s new strategy which focuses on areas of market opportunities that allow Zensar to concentrate organisational resources, investments and alliances to deliver maximum business impact. In particular, M3bi strongly augments Zensar’s thrust in the data engineering, analytics and Artificial Intelligence and Machine Learning and advanced engineering services, it said in a statement.
The deal will add marquee clients to Zensar’s portfolio in both Banking, Financial Services & Insurance (BFSI) and other verticals, allowing Zensar and M3bi to jointly drive an expanded set of offerings to these global firms.
Zensar, an RPG group company, expects the deal to close by August 31.
Harsh Goenka, Chairman of RPG Enterprises and Zensar Technologies, said, “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”.
Post-acquisition, M3bi will continue to be managed by its co-founders Anir Khandekar and Suresh Potluri.
Potluri said, “Our clients require advanced engineering skills to develop new platforms and data analytics solutions to make informed decisions to drive better customer experience and engagement. Zensar’s expertise in the digital technology space will add more depth to our customers”.
Founded in 2010, Arizona-headquartered M3bi has 445 professionals working across the US and India. M3bi provides information technology services, including data engineering, business intelligence and analytics, data warehousing and big data, and digital engineering services, including mobile and user experience and user interface development.
M3bi had posted about $26.75 million in revenue from operations for the calendar year ended December 31, 2020. M3bi India’s had posted revenue from operations of ₹295.24 crore for the financial year ended March 31, 2020.
