Tech Mahindra to acquire Zen3 Infosolutions for Rs460cr
25 February 2020
Tech Mahindra on Monday announced the signing of an agreement to acquire 100 per cent stake in US-based Zen3 Infosolutions, in a deal worth $64 million or about Rs460 crore.
Out of the $64 million, Tech Mahindra will pay $42 million or about Rs300 crore at closing and the remaining depending on the financial performance of the Microsoft customer account for the upcoming three years.
Seattle headquartered Zen 3 has over 1,300 employees spread across offices in Seattle, Dublin, Hyderabad, Vishakhapatnam and Bengaluru. Zen3 revenue for six month period ended 30 June 2019, was $25 million (about Rs180 crore).
"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 area," Vivek Agrawal, Global Head-Enterprise Business and Portfolio Companies, Tech Mahindra, was quoted as saying.
Agrawal said that Zen3 capabilities can be leveraged by Tech Mahindra in developing various voice-based applications, autonomous car projects etc.
Tech Mahindra expects the deal to close by 1 April 2020.
In a separate filing, Tech Mahindra announced a dividend of Rs 10 per equity share for 2019-20.
"It has been a quarter of strong growth with substantial operational and financial metrics improvement. This quarter also witnessed healthy cash flow generation, and with a view to returning enhanced value to our shareholders, we are announcing an interim dividend of Rs 10/- per equity share, ie, 200 per cent," CP Gurnani, managing director and chief executive officer, Tech Mahindra, said.