Zensar acquires e-commerce firm Professional Access Software
The company did not disclose the deal amount
Mumbai: Pune-based Zensar Technologies Ltd, the software services outsourcing arm of the RPG Group, on Thursday announced the acquisition of India-registered e-commerce company Professional Access Software Development Pvt. Ltd for an undisclosed amount.
“The board of directors has approved the acquisition of Professional Access Software Development Pvt. Ltd, a company registered in India. In addition, Zensar Technologies Inc., the US-based wholly-owned subsidiary of Zensar Technologies, has acquired 100% outstanding equity shares of Professional Access Ltd, a company registered in US. Both companies are engaged in the information technology business with specialization in the e-commerce domain," the company said in a filing to the BSE.
Zensar, with a net worth of ₹ 945.5 crore, had said in an analyst conference call after it announced its fiscal first-quarter results on 24 July that it was scouting for an acquisition in the e-commerce space with a ticket size of $30-50 million ( ₹ 183-305 crore), or an acquisition in Europe in the second quarter of the year.
A banker with knowledge of the deal who requested anonymity said the company was also eyeing an acquisition in the enterprise resource planning (ERP) space to boost its analytics portfolio.
Earlier this month, Zensar announced that it had won new deals in Germany, including a multimillion dollar government agency project, as well as other significant deals elsewhere in Europe in July. Gurdeep Grewal, senior vice-president and head of Europe for Zensar, had said in a statement to BSE that the company expected Europe to contribute over 15% to its revenues by 2017.
Zensar reported a 13.8% rise in revenue in the June quarter to ₹ 604.78 crore from ₹ 531.28 crore a year earlier. In the last one year, Zensar’s share price has risen 92.81%.
In July last year, the company told Business Standard that it was in talks with two US-based firms for a possible acquisition to the tune of $20-50 million to help it reach its target revenue of $1 billion by 2017-18, out of which $100 million was expected to come from acquisitions.
Zensar Technologies shares gained as much as 3.4% in intra-day trade before falling 0.4% to ₹ 428.20 apiece at 2:06pm, while the benchmark Sensex index rose 0.62% to 26,078.98 points.
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