Indian tech company, Tech Mahindra recently announced that it has signed an agreement to acquire a 100% stake in US-based Zen3 Infosolutions for $64mn (approx ₹460Cr) in an all-cash deal.
With headquarters in Seattle, Zen3 has offices in Dublin, Hyderabad, Visakhapatnam, and Bengaluru with over 1,300 employees.
Talking to the Press Trust of India, Vivek Agrawal- Global Head, Enterprise Business and Portfolio Companies said, “The acquisition of Zen3 Infosolutions is in line with our strategy to build new capabilities. It has expertise in artificial intelligence, machine learning, annotations, cloud engineering, etc which are high growth areas.”
According to Agrawal, Tech Mahindra will acquire 100 percent stake in the company for $64 million or about Rs 460 crore out of which $42 million or about Rs 300 crore will be paid at closing and the remaining is linked to the financial performance of the Microsoft customer account for the upcoming three years.
Agrawal also said that Zen3 capabilities can be leveraged by Tech Mahindra in developing various voice-based applications, autonomous car projects, etc.
Zen3 is a software solution group with expertise in software product engineering, DevOps testing, machine learning, AI and analytics.
In a BSE filing, the tech giant said that the acquisition would bring strong capabilities in AI enablement services. This will also help it to bolster its enterprise application practice. While Tech Mahindra will acquire the Indian subsidiary of Zen Group – ZEN3 Infosolutions, Tech Mahindra (Americas) Inc will acquire Zen3 Infosolutions (America) Inc.
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