New Delhi: Zensar on Wednesday said it will acquire Cynosure for about $33 million, a move that will help the Indian IT firm strengthen its play in the insurance vertical.
Cynosure focuses on providing Guidewire platform implementation services to Property and Casualty (P&C) insurance carriers and clocked revenues of about $20 million in 2017.
“The addition of Cynosure will help us strengthen our insurance vertical that accounts for about 15% of our business...the total deal size is about $33 million along with performance-linked earnout," Zensar CEO and MD Sandeep Kishore told PTI.
The acquisition will be funded by a mix of internal accruals and external debt. As part of the deal, the entire share capital of Cynosure Interface Solutions (Cynosure India) will be acquired for an amount “not exceeding Rs13 crore".
Zensar Technologies Inc -- a wholly owned subsidiary of Zensar -- will acquire the entire share capital of Cynosure Inc for “approximately $31 million and deferred payments, subject to meeting the performance targets over the 24 months post closing", Zensar said in a regulatory filing.
Cynosure has an offshore development centre in Bengaluru, India. “Cynosure is a Guidewire partner, and is well respected in the market place, making them experts in this area. They bring successful implementations, providing core system modernisation with rich customer relationships that will serve as a significant value addition to our offerings," Kishore said.
Post the acquisition, Cynosure will continue to be managed by the founders led by its CEO and co-founder Sid Wadhwa. The management and team of Cynosure in the US and Bengaluru, India comprising of over 150 people, will become a part of Zensar’s insurance vertical.