Zensar’s US subsidiary, based in San Jose, Calif., will conduct the acquisition. The company will pay an upfront payment of $21.6 million and performance-based deferred payments of no more than $9 million over 36 months. The cash deal will be funded through internal accruals.
Zensar Technologies Ltd. will also acquire the entire share capital of M3bi’s India-based subsidiary, M3bi India Private Limited, while Zensar Technologies Inc. will acquire the entire share capital of M3bi LLC.
The deal is expected to close by August of this year. M3bi co-founders Anir Khandekar and Suresh Potluri will continue to lead the company after the acquisition.
Khandekar and Potluri founded M3bi in 2010 in Scottsdale as a data engineering and digital engineering firm. Zensar was founded in 1991 in Pune, a city in the southern India state of Maharashtra, and is one of almost a dozen companies part of the centuries-old RPG Group, also based in India. Zensar provides digital services to companies around the world in several industries, including banking and financial services, hi-tech and manufacturing, insurance, and retail and consumer services.
According to a press release, “the addition of M3bi reinforces Zensar’s new strategy which focuses on areas of market opportunities that allow Zensar to concentrate organization resources, investments and alliances to deliver maximum business impact.”
The statement also notes that M3bi’s strength in digital engineering and data and analytics, the company’s core offerings, will help expand Zensar’s push to increase depth and scale in these areas. Zensar is also looking forward to adding M3bi’s global firms to its client portfolio.
Zensar Technologies CEO and Managing Director Ajay S. Bhutoria said that they are “delighted” with this acquisition, “Clients looking for large-scale digital transformation will be able to leverage our combined expertise.”
Khandekar and Potluri also noted their excitement, both saying they are looking forward to seeing M3bi grow under Zensar.