Zensar acquires Akibia Inc. : Mumbai / Boston
Press Release | 22 Nov 2010
Acquisition to build dual shore end-to-end capabilities for Zensar in Infrastructure Management and Information Security solutions for American and European clients Zensar Technologies Inc USA and PSI Holding Inc., USA (Akibia) today announced that the two companies have entered into a definitive agreement for Zensar to acquire Akibia. Under the terms of the agreement, Zensar will offer to acquire all of the outstanding stock of Akibia through a merger process with Zensar’s wholly owned US subsidiary. Zensar's acquisition of Akibia furthers its mission to strengthen its position in the critical and fast growing Infrastructure Management and Information Security space by combining Zensar’s Remote Infrastructure Management (RIM) offshore services for global clients with Akibia’s United States and European Data Center practice. With this acquisition, Zensar will be well positioned to deliver solutions that can transform the future of Infrastructure Management, Information Security and IM analytics around the world. Announcing the acquisition, Mr. Harsh Goenka Chairman of RPG and Zensar said “The combination of the two companies will enhance the value Zensar delivers to customers. It is strategic to Zensar, as Akibia is a key player in the infrastructure management space with revenues of over 100 million US Dollars and a robust management team in the US and Europe.” ”Zensar’s Infrastructure Consulting and Data center Management capabilities, with Akibia’s cumulative knowledge, experience and best practices of supporting and securing mission-critical data centers will give us a full life cycle capability to service global customers and add over 300 outstanding global associates to the Zensar team” said Dr Ganesh Natarajan, Vice Chairman & Managing Director of Zensar. "Akibia has been a trusted advisor to our customers and partners for over 20 years – our integrity and service acumen are unmatched in the industry, we engage with our clients and deliver the highest quality of service," said Thomas Willson - Founder and Executive Chairman. Tom Tucker, President & CEO of Akibia said "By joining forces with Zensar, we will accelerate our ability to deliver on our vision of bringing innovative solutions to the market and becoming the customer’s trusted partner in providing, mission-critical services." Expanded Opportunities for Zensar and Akibia : This acquisition will significantly expand Zensar's addressable market and growth potential, broadening solutions Zensar provides to the rapidly growing Infrastructure markets. The combination will also expand Zensar's offering of mission-critical solutions to the enterprise customer. Adding the capabilities of Akibia will further enhance Zensar’s customer base for Datacenter services while there is an equal opportunity to scale the Remote Infrastructure Management Services business using Akibia’s large datacenter customer base. This enhanced capability will allow bidding for projects that involve multiple service lines. The acquisition of Akibia will also diversify Zensar’s Information Security business by adding Akibia’s system integration and consulting expertise in the fast growing network security, compliance and risk management markets. For Akibia, joining Zensar will provide global operational scale and the ability to penetrate new geographies and markets more efficiently, thereby accelerating its go-to-market strategy and growth potential. The enhanced capability will allow bidding for projects that involve multiple service lines and will enable Akibia to leverage Zensar’s offshore capability to evolve into a more profitable multi-shore model. Integration and Closing Details As part of the integration of the two companies, Akibia will become a new business unit within Zensar. In addition to Akibia’s Founder and Chairman, Thomas Willson and its President & CEO, Tom Tucker, who will join the management council of Zensar, the company’s management team and over three hundred associates will be integrated into Zensar’s Global Delivery model to retain and enhance the service offerings to the customers of both companies.. The completion of the transaction, which is subject to customary government approvals and the satisfaction of other customary conditions, is expected to close in the current quarter.