RPG to buy Fujitsu stake in Zensar

The principal shareholders of Pune-based Zensar Technologies, an IT and BPO services provider, have concluded an agreement whereby RPG will buy Fujitsu's stake in Zensar for an undisclosed sum.

The agreement comes into force with immediate effect and the deal will be completed soon.

Both companies have an equal stake in Zensar with 69.15 lakh equity shares, respectively. Fujitsu holds a stake in Zensar through two companies - Fujitsu Services, which holds 26.25% and Fujitsu Holdings, which had 2.93%. Incidentally, when the company recently announced the acquisition of ThoughtDigital, a US-based company for $24.9 million, Goenka had admitted that he was "looking at opportunities to increase our stake in Zensar."

There were rumors that the relationship between the two companies
(RPG and Fujitsu) were not well and also that Fujitsu had not been
contributing enough to increase Zensar's business.

Harsh Goenka, chairman, RPG Group and board of Zensar Technologies, said: "We are delighted that Fujitsu has agreed to sell us the stake in Zensar. This enables us to consolidate our shareholding in the company, which has been performing extremely well in the last few years and opens up possibilities of major growth in the years to come."

A Fujitsu Services spokesman said: "We are happy this transaction has been amicably completed. We will continue to work with the company's management to ensure that all  present and future joint projects are executed professionally."

Ganesh Natarajan, vice chairman and managing director, Zensar Technologies, said: "This shareholding change opens up avenues for growth that will see the Company realise its true potential in the coming years. We expect to achieve and exceed our performance guidance this year and are targeting a 50% plus growth for the coming fiscal. With a full management team in place, excellent capabilities in all our service areas and a growing list of global customers, we look forward to moving to the next level of success."

In the nine months ended December 2006, the company has grown its revenue by 43% over the previous year with over 100 per cent jump
in profits.