IT company Zensar Technologies today announced acquisition of Bangalore based Keystone Logic, which provides retail and supply chain automation technology, in an all cash deal.
In joint statement, Zensar Technologies Limited and the management of Keystone Logic said, "they have entered into a definitive agreement for Zensar to acquire the business of Keystone Logic Solutions Private Limited."
In addition, Zensar Technologies Inc, a wholly owned subsidiary of Zensar Technologies Limited will acquire Keystone Logic Inc, a wholly owned subsidiary company in Atlanta, US of Keystone Logic Solutions Private Limited, the statement said.
Zensar did not disclose the financial details of the deal.
Keystone Logic is an omnichannel and digital supply chain company, headquartered in Bangalore with an office in Atlanta, US.
The company helps global retail and consumer brands with implementation of their order management and warehouse management.
"The acquisition has been done through internal accruals and it is cash deal. We expect to complete this deal in April. Keystone has been a market leader in its space. It has been serving 15 customers and all of them are in Fortune 500 companies. Except 1 customer, there is no duplication of clients between Zensar and Keystone," Zensar CEO and MD, Sandeep Kishore said.
Under the terms of the agreements, Keystone Logic Inc will be a wholly-owned subsidiary of Zensar Technologies Inc and the business of Keystone Logic Solutions Private Limited will become a part of Zensar Technologies Limited on completion of the transaction.
"We are going to retail brand and employees of Keystone," Kishore said.
He said that the previous 12 month revenue of Keystone was USD 12.7 million and gross margin has been to the same level as that of Zensar.
"With this acquisition, we now have complete suite of product offering that we can promise to our large customers. Zensar will continue to look and expand in global geographies where it operates. We will continue to evaluate acquisition in internet of things, security and other segments that help us add to our home grown capabilities," Kishore said.
Zensar Technologies shares closed at Rs 922.05 a unit, up by 2.4 per cent compared to previous close on BSE today.
Disclaimer: No Business Standard Journalist was involved in creation of this content
