Zensar acquires US-based digital marketing firm Indigo Slate for $18 mn

Zensar, an RPG Group company and a provider of IT services, on Friday said it has entered into a definitive agreement to acquire US-based Indigo Slate for around $18 million apart from performance-based deferred payments over a period of 36 months post the closure of the deal.

Founded in 2006, the Bellevue, Washington-based company is a digital marketing focused customer experience agency with revenues of approximately $20 million in fiscal 2018. The company founded by two persons of Indian origin Shandy Sharma and Aaron Duggal, employs around 120 people out of Seattle and San Francisco, and works with marque clients across hi-tech, retails and manufacturing sector. The acquisition will give Zensar access to around 10 of the company’s large digital clients all of whom are Fortune 500 companies, said Sandeep Kishore, CEO, Zensar.

“With Indigo Slate, we have taken another major step towards providing customer experience, digital marketing and design capabilities to our clients in the US,” said Kishore.

This will be Zensar’s fourth acquisition in the last 22 months focusing on the digital space. In March this year, the Pune-headquartered company has acquired US-based Cynosure Inc. for a consideration of about $33 million (Rs 2.15 billion). In FY17, the company had made two acquisitions including Foolproof Ltd. a UK-based digital experience firm, and Keystone Logic Solutions, a retail solutions provider.

The addition of Indigo Slate is expected to strengthen Zensar’s customer experience and digital transformation capabilities. Digital today accounts for 38 per cent of Zensar’s overall revenues growing at a compounded annual growth rate of 30 per cent.

“We expect to close the transaction in the next couple of weeks and the revenue from this deal should start figuring in Zensar revenue stream from the second quarter itself,” said Kishore.

Aaron Duggal, co-founder and CEO of Indigo Slate said “With Zensar, we are looking forward to more reach and access to new markets, while leveraging their expertise in managing large digital transformation mandates.”