AgenciesPUNE: Tech Mahindra has acquired Zen3 Infosolutions (America) for $44 million.
A further $22 million will be paid out after three years, based on performance.
Zen3 is a software solution group with expertise in software product engineering, DevOps testing, machine learning, AI and analytics.
Tech Mahindra said in a filing to the BSE 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.
Zen3 Infosolutions has over 1,300 employees globally. It has offices in Seattle, Dublin, Bengaluru, Hyderabad and Vishakhapatnam, Tech Mahindra said in a statement.
Zen3’s revenue for the financial year ended December 31, 2018 was $38 million. Revenue for the six-month period ending June 30, 2019 was $25 million.
Separately, Tech Mahindra also announced an interim dividend of 200% or Rs 10 per equity share.
CP Gurnani, Managing Director and Chief Executive Officer, Tech Mahindra said, “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, i.e. 200%.”
A further $22 million will be paid out after three years, based on performance.
The all-cash transaction is expected to close by April 1.
Zen3 is a software solution group with expertise in software product engineering, DevOps testing, machine learning, AI and analytics.
Tech Mahindra said in a filing to the BSE 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.
Discover the stories of your interest
Zen3 Infosolutions has over 1,300 employees globally. It has offices in Seattle, Dublin, Bengaluru, Hyderabad and Vishakhapatnam, Tech Mahindra said in a statement.
Zen3’s revenue for the financial year ended December 31, 2018 was $38 million. Revenue for the six-month period ending June 30, 2019 was $25 million.
Separately, Tech Mahindra also announced an interim dividend of 200% or Rs 10 per equity share.
CP Gurnani, Managing Director and Chief Executive Officer, Tech Mahindra said, “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, i.e. 200%.”
Get Unlimited Access to The Economic Times
