Tech Mahindra said it has acquired Zen3 Infosolutions (America) for $44 million.
A further $22 million will be paid out after three years, based on financial performance. The all-cash transaction is expected to close by 1 April.Zen3 Infosloutions is a IT and software services solution group with expertise in Software Product Engineering, DevOps testing, Machine learning and AI & Analytics with offices in Seattle, Dublin, Bengaluru, Hyderabad, and Vishakhapatnam. The company has more than 1300 employees.
Tech Mahindra said that the acquisition would bring strong capabilities in AI enablement services. This will also help it to bolster its enterprise application practice.
Tech Mahindra will acquire the Indian subsidiary of Zen Group - ZEN3 Infosolutions, while Tech Mahindra (Americas) Inc will acquire Zen3 Infosolutions (America) Inc. The announcement was made after market hours yesterday, 24 February 2020.
Shares of Tech Mahindra fell 1.24% to Rs 810. On the technical front, the stock's RSI (relative strength index) stood at 51.017. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was currently trading between its 20-day moving average (DMA) placed at Rs 817.49 and its 50-DMA placed at Rs 794.20.
The IT firm's consolidated net profit gained 1.95% to Rs 1,145.90 crore on a 6.44% rise in net sales to Rs 9,654.60 crore in Q3 December 2019 over Q2 September 2019.
Tech Mahindra is engaged in the business of computer programming, consultancy and related services. The firm's segments include information technology (IT) services and business processing outsourcing (BPO). The company operates in various sectors, including telecom business and enterprise solutions business.
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