Pune headquartered information technology (IT) services firm Zensar Technologies has announced it is buying data engineering and analytics firm M3bi to bolster its advanced engineering capabilities.
The acquisition includes an upfront payment of $21.60 million (Rs 158.3 crore according to current exchange rates) and performance based deferred payments of $9 million (Rs 65.9 crore) over a 36-month period.
The acquisition will be funded by internal accruals of Zensar, per a press statement issued by the company.
RPG Group backed Zensar will use M3bi to strengthen its capabilities in the areas of data engineering, analytics, AI / ML and advanced engineering services. The acquisition will also add marquee clients to Zensar’s portfolio in banking, financial services and insurance sector.
“Data engineering and analytics and advanced engineering are key strategic growth opportunities for us. With the addition of M3bi’s capabilities, we will expand our offerings in this space to address the business-critical needs of our clients. Clients looking for large-scale digital transformation will be able to leverage our combined expertise,” Ajay S Bhutoria, chief executive officer and managing director at Zensar Technologies said in the statement.
Founded in 2010 in Scottsdale, Arizona by Aniruddha Khandekar and Suresh Potluri, M3bi clocked $26.75 million in revenue from operations for the financial year ending December 31, 2020. The company employs 445 people across operations in US and Hyderabad in India. Post-acquisition, M3bi will continue to be run by Potluri and Khandekar, said Zensar in the statement.
“Our customers are some of the most well-recognized global brands. Our clients require advanced engineering skills to develop new platforms and data analytics solutions to make informed decisions to drive better customer experience and engagement. Zensar’s expertise in the digital technology space will add more depth to our customers,” Suresh Potluri, co founder of M3bi said in the statement.