Zensar to merge US-based step-down subsidiaries
Pune-headquartered information technology (IT) services firm Zensar Technologies has announced the plan to merge four of its American step-down subsidiaries -- Keystone Logic, Professional Access Limited, Cynosure, and Indigo Slate.
According to a regulatory disclosure with the bourses, the entities will become a part of Zensar Technologies, a US-based wholly owned subsidiary of the company, and cease to exist as separate subsidiaries of the RPG Group-run digital solutions and technology services company.
Keystone Logic is headquartered in Alpharetta, Georgia, Professional Access in Westborough, Massachusetts, Cynosure in Lisle, Illinois, while Indigo Slate is based in Bellevue, Washington.
The move was unanimously approved by the board of directors of Zensar at a shareholders meeting conducted on Thursday.
While all four subsidiaries are engaged in providing digital solutions and technology services to global organizations, Cynosure is the biggest of the lot – with a net worth of $7 million and turnover of $36 million for the year ended March 31, 2020. The turnover of Keystone Logic, Professional Access, and Indigo Slate stood at $23 million, $10 million, and $22 million during the same period.
It has been suggested that the merger would result in effective management and unified control of operations, leading to greater business synergies and higher operational efficiencies at Zensar Technologies Inc., which alone posted a turnover of $277 million for the year ended March 31, 2020.
The shareholders of the entities in question have also given their consent for the merger. However, the change will not involve any financial consideration or modify the shareholding pattern at Zensar Technologies Limited.
The development comes just a few months after Former L&T-Nxt executive Ajay S Bhutoria took over as the CEO and managing director of the firm.
For the quarter ending December 31, Zensar Technologies Limited had posted a profit Rs 98.7 crore, up over 2x from Rs 38.3 crore a year ago.