Zensar to divest non-core businesses
Press Release | 22 Jan 2019
Pune, India January 22, 2019: Zensar, a leading digital solutions and technology services company that specializes in partnering with global organizations across industries on their digital transformation journey, announced that it has entered into an agreement with Lorhan IT Services Private Limited, a wholly owned subsidiary of First Tek, Inc., a US based IT services and products company to divest its Australia, Middle-East and India-based businesses. This is in line with Zensar’s commitment to focus and invest in the core markets of the US, Europe and South Africa, which together comprises more than 98% of Zensar’s consolidated revenue as on December 31st, 2018.
Under the terms of the transaction, identified assets, liabilities, employees, and client contracts relevant to these businesses will be transferred to Lorhan. The Australia and Middle East businesses will be transferred by way of a share sale, while the India-based business will be transferred as a slump sale.
Sandeep Kishore, Chief Executive Officer and Managing Director, Zensar Technologies commented, “Zensar is focused on strengthening its key verticals of hi-tech manufacturing, retail, and insurance in our core markets of US, Europe and South Africa. In the First-Tek group, we found the right partner for our Australia, Middle-East and India businesses. Given their focus to grow these regions we believe these businesses are aligned better for growth with First-Tek.”
Speaking on this announcement, Kumar Bhavanasi, President and Chief Executive Officer, First-Tek said, “We are a fast-growing company, and were looking to expand our operations in Australia, Middle-East and India. Zensar’ s operational base and the skills on offer complements our growth strategy. We look forward to adding more value to current customers and giving exciting career opportunities to the people coming on board.”
Equirus represented Zensar and acted as sole advisor to the transaction.