Zensar Technologies acquires retail tech firm Keystone Solutions
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Mumbai: IT services firm Zensar Technologies said on Thursday that it has acquired US-based supply chain management firm Keystone Solutions for an undisclosed amount.
Zensar will retain Keystone’s brand and team of around 220 people.
Keystone Solutions, based in Atlanta, Georgia, in the US, offers solutions to digitally manage orders and warehousing for large retail firms. It “will augment Zensar’s existing retail management portfolio”, Zensar Technologies CEO Sandeep Kishore said in a phone interview.
Retail brings in about one-fourth of Zensar’s total business, and with the Keystone acquisition, this will increase to 27%, Kishore said. Zensar reported revenues of Rs700.9 crore in the December quarter, up 4% from a year ago.
Keystone’s revenue in 2016 was $12.7 million and its technology will be also used to provide back-end management to Zensar’s manufacturing clients who make up 50% of its business, added Kishore.
This is Zensar’s second acquisition in five months. In November, the firm bought UK-based user design firm Foolproof for its front end user experience design.
Analysts said that the acquisition will help make Zensar a complete digital retail solutions provider.
“Retail business constitutes 25% of revenue for Zensar”, an analyst with a brokerage firm said, requesting anonymity. “Foolproof gave them the UX (user experience) design and digital commerce front end. Now with the Keystone acquisition, they have the technology piece for the back-end management. With this, they are present across the value chain of retail businesses.”
Zensar has been on an acquisition and investment spree to reorient its business from a provider of traditional IT services to a firm focused on digital services.
“Zensar has been focusing on investments in organic business growth”, the analyst said. “Under Sandeep Kishore, the company has been taking a more strategic view and investments. “
Zensar Technologies’ stock rose 2.4% to Rs922.05 on BSE, on a day the Sensex gained 0.39% to 29,647.42 points.