- Zensar acquires M3bi, a US-based digital engineering firm
- The transaction is made in parts
- As per the company, the acquisition will be paid off from the internal accruals
- The deal will close on or before August 31, 2021
Zensar Technologies, a subsidiary of the RPG Group, gets involved in a deal to buying US-based digital engineering firm M3bi.
The deal consists of immediate payment of USD 21.60 million and performance-based deferred payments to be paid over three years, not exceeding a total of USD 9 million. The total amount of the deal will be sourced by internal accruals of the company.
The Indian software conglomerate has signed a definitive agreement to purchase M3bi. On acquisition, Zensar Technologies will acquire the total share capital of the digital engineering company (M3bi India) M3bi LLC.
The deal is expected to close on or before August 31, 2021, or on the completion of closing conditions, whichever is earlier.
Idea behind acquisition
M3bi, the digital engineering firm, will strengthen Zensar’s presence and hold in data engineering, machine learning, artificial intelligence analytics, and advanced engineering services.
Additionally, the purchase will add customer champion clients to Zensar’s portfolio in the BFSI (banking, financial services, and insurance) and other verticals, enabling both companies to drive increased offerings to global firms.
One of the primary elements of Zensar’s strategy consists of offering depth and scale in areas of data analytics, digital engineering, and the core offerings of M3bi.
Expert’s take on acquisition
Harsh Goenka, Chairman of RPG Enterprises and Zensar Technologies, on the acquisition, 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. The team steered by Anir and Suresh brings a combination of capabilities and strong client relationships to our fold.”
Established in 2010, M3bi is headquartered in Scottsdale, Arizona, in the US. The digital engineering firm operates with a 445 members strong team across the US and India.
On the solutions front, the company offers IT services, inclusive of business intelligence, data warehousing, digital engineering, big data services along with mobile and user experience and user interface (UI) development.