Mid-cap information technology (IT) services company 3i Infotech has completed a deal to divest its entire shareholding in New York-based Professional Access Software Development Private Limited to Pune-based software services firm Zensar Technologies Ltd, by way of a slump sale in an all-cash deal, according to a stock market disclosure.
Also, 3i Infotech Holdings Pvt Ltd, a Mauritius-based subsidiary Mumbai-based 3i Infotech Ltd, has completed the transaction for the divestment of its holding in Professional Access Ltd by selling its entire stake to Zensar Technologies Inc for a cash consideration.
3i Infotech had acquired Professional Access group in 2007.
“These sales are in line with the group’s strategy to sell its non-core assets/investments and use the additional cash generated from such sale to deleverage its balance sheet and for business purpose,” the disclosure said.
The financial details of the deal have not been disclosed. The deal will be financed through a mix of internal accruals and debt.
Babu Venkatesh and Ashu Chahal, founders of Professional Access, would continue to manage the company. The management team of Professional Access and all their associates based in Bangalore, Mumbai and Delhi-NCR would become a part of Zensar's Global Delivery organisation.
Professional Access is engaged in the IT business with specialisation in the e-commerce domain. With revenues of over $38 million, Professional Access is one the largest Oracle ATG and Endeca partners in the world. It is an Oracle Platinum partner with presence in US, UK, Latin America, Middle East and Africa.
"Professional Access's market leadership in Oracle e-Commerce space and its strong management team is strategic to Zensar's plan to increase its market share in the high growth e-Commerce space specifically and the MRD segment in general. The combination of the two companies will enhance the volume Zensar delivers to clients in the retail domain,” Zensar chairman Harsh Goenka said.
Mid-sized software services firm Zensar, part of Harsh Goenka-led RPG Enterprises, was set up in 2001. The company’s expertise spans across manufacturing, retail, banking, insurance and healthcare. The company offers services in mission-critical applications, enterprise applications, e-business, BPOs and knowledge services.
It has more than 7,000 associates with sales and operations presence across the US, the UK, Germany, Sweden, the Middle East, Singapore, China, Australia and Japan, besides South Africa and India.
Avendus Capital was the adviser to 3i Infotech in this transaction.
(Edited by Joby Puthuparampil Johnson)