Zensar, a digital solutions and technology services company that specialises in partnering with global organisations on their digital transformation journey, announced that it has entered into an agreement with Service Express LLC to divest its global Third Party Maintenance (TPM) business. This is in line with Zensar's commitment to focus on and invest in its core businesses which comprised 96 % of its revenues as on Q1FY21.
The TPM business provides third party hardware maintenance support for a wide variety of data center equipment and platforms. These services include remote support, call handling, spare parts, logistics management, replacement & installation, repairs and field support.
As part of its long-term strategy, Zensar had identified two non-core businesses, comprising Rest of the World (RoW) business and the TPM business. Zensar had divested the RoW business last year and is now divesting the TPM business.
Under the terms of the transaction, Zensar's TPM business will be transferred to Service Express, a leading TPM service provider headquartered in the US, by way of a 100% share sale of Zensar' s equity shareholding in PSI Holding Group Inc., a wholly owned subsidiary of Zensar Technologies Inc. The closing of the transaction is subject to approval by shareholders of Zensar Technologies Limited.
Sandeep Kishore, Chief Executive Officer and Managing Director, Zensar Technologies commented, "With the divestment of both the non-core businesses, RoW earlier and TPM with this transaction, our complete focus and attention is to grow our core businesses comprising of Digital, Cloud and IT services business. We are executing very well to our long term strategic priorities and growth."
Speaking on this announcement, Ron Alvesteffer, Chief Executive Officer of Service Express said, "This business is in line with our core offerings and we are confident that it will help accelerate our growth in the TPM industry."
Navneet Khandelwal, Chief Financial Officer, Zensar Technologies added, "Zensar is committed to redesign its business strategy to meet changing demands of the marketplace. This divestiture provides us with additional resources to invest in primary business areas, which will be of relevance to our customers and partners. The transaction will be EBITDA, PAT, Cashflow and ROCE accretive to Zensar."
Shares of ZENSAR TECHNOLOGIES LTD. was last trading in BSE at Rs.185.2 as compared to the previous close of Rs. 182.5. The total number of shares traded during the day was 9916 in over 345 trades.
The stock hit an intraday high of Rs. 188 and intraday low of 182. The net turnover during the day was Rs. 1831532.