The Hindu Business Line : RPG Group buys out Fujitsu's stake in Zensar

In a nutshell
To develop Zensar into a tier-I IT company.
At current stock prices of Zenzar, this stake acquisition could cost RPG nearly Rs 168 crore.
Zensar has expertise in the verticals of manufacturing, retail, logistics, financial services, telecom and utilities.

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Mumbai/Pune March 2 The RPG Group has agreed to purchase the 29.5 per cent stake of its partner Fujitsu in Zensar Technologies Ltd for an undisclosed price.

Mr Harsh Vardhan Goenka, Chairman, RPG Group, said that a share purchase agreement for the acquisition was signed with the Japanese group on Wednesday.

He did not disclose the acquisition price saying that he was bound by a confidentiality clause in the agreement.

With this buyout, RPG Group's stake in Zensar would go up to about 60 per cent, the balance being held by public shareholders.

In a notice to the stock exchange, the company said that 69.14 lakh shares held by Fujitsu in Zensar will be acquired by RPG Group company Jubilee Investment and Industries Ltd or its affiliates. At current stock prices of Zenzar, this stake acquisition could cost RPG nearly Rs 168 crore.

"For sometime, our partner has been expressing their intention to exit the company to seek opportunities independently. We have now reached an agreement," said Mr Goenka

"We want to develop Zensar into a Tier-I IT company. We are now growing in servicing the retail sector, which offers tremendous potential," he said.

A spokesman for Fujitsu Services said: "We are happy that this transaction has been amicably completed. We will continue to work with the company's management to ensure that all present and future joint projects are executed professionally."

Zensar has expertise in the verticals of manufacturing, retail, logistics, financial services, telecom and utilities. The company offers end-to-end solutions across technology platforms and industry domains through a Global Delivery Model.

Zensar has technology partnerships with IBM, Microsoft, Sun Microsystems and Oracle to bring solutions to its customers. "We want to be among the top 10 Oracle players in the world," said Mr Goenka.

Zensar Technologies' Vice-Chairman & Managing Director, Dr Ganesh Natarajan, said, "This shareholding change opens up avenues for growth that will see the company realise its true potential in the coming years. We expect to achieve and exceed our performance guidance this year and are targeting a 50 per cent plus growth for the coming fiscal. With a full management team, in place, excellent capabilities in all our service areas and a growing list of global customers, we look forward to moving to the next level of success."

Last week, the Pune-headquartered Zensar acquired the US-based ThoughtDigital, a systems integrator, for $27 million.

Zensar offers its services in 18 countries, including China and Poland. "We are looking at a couple of additional acquisitions," said Mr Goenka.

Zensar shares closed at Rs 242.65 on the BSE down by 1.91 per cent over the previous close.

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