The Board of Directors of Tech Mahindra Ltd has approved the proposal to acquire 100% stake in Zen3 Infosolutions (America) Inc. directly and through its wholly owned subsidiary viz. Tech Mahindra (Americas), Inc.
The target entity is a USóbased company Zen3 Infosolutions (America) Inc. Zen3 is a leading software solution group with expertise in Software Product Engineering, DevOps testing, Machine learning and AI & Analytics with offices in Seattle, Dublin, Bengaluru, Hyderabad, and Vishakhapatnam. The company has more than 1300 employees.
Revenue for the financial year ended 31-Decó2018 was US$38 mn. Revenue for the 6 month period ending 30-June-2019 was US$ 25 mm.
The acquisition brings with it strong capabilities in AI enablement services, AI Speech solutions, Cloud engineering, software product engineering and DevOps. It helps Tech Mahindra in bolstering its enterprise application practice and capabilities.
Tech Mahindra Limited will acquire the Indian subsidiary of Zen Group viz., ZEN3 Infosolutions Private Limited and Tech Mahindra (Americas), Inc. to acquire Zen3 Infosolutions (America) Inc. along with remaining entities in the Group.
The consideration of $42mn will be paid at closing. Another $22mn will be paid over 3 years linked to financial performance.
The transaction is expected to close by 1st April 2020.
Shares of TECH MAHINDRA LTD. was last trading in BSE at Rs.822 as compared to the previous close of Rs. 829.55. The total number of shares traded during the day was 38184 in over 1869 trades.
The stock hit an intraday high of Rs. 843.4 and intraday low of 816. The net turnover during the day was Rs. 31780317.