Zensar Technologies forms JV with Japan-based EZA

IT and BPO solutions provider Zensar Technologies Limited is forming a joint venture with Tokyo-based IT firm EZA Limited to create Zensar Advanced Technologies to further strengthen its footprint in the emerging Japanese market. The transaction would involve the transfer of all EZA’s existing order book, employees, technology, and intellectual property to the newly formed joint venture.

EZA was incorporated in 1996 and had a turnover of $4.2 mn in 2006, and brings in over 10 years of strong industry experience in Japan. The company has over the years developed products in media server, digital appliances and security space. Its customers include NEC, Japan Railways and Unisys and other retail customers. Having gained technology and domain expertise pertaining to mobile terminals over the years, EZA is now focusing to enter the digital home appliances and security markets.

Read the article in Business Standard.

RPG Group to buy out Fujitsu's stake in Zensar Technologies

The Economic Times reportsthat the RPG Group has entered into an agreement with Fujitsu of Japan to buy out the latter's stake in Zensar Technologies Limited. Zensar is a 50:50 IT joint venture between Fujitsu and the RPG Group. The 6.9 mn shares held by Fujitsu will be bought by Jubilee Investment and Industries Limited, an RPG Group company.

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Zensar Technologies buys US-based IT firm ThoughtDigital for $24.9 mn
Fujitsu in talks to buy out Intelenet Global Services, eyes acquisitions in the IT space

Zensar Technologies buys US-based IT firm ThoughtDigital for $24.9 mn

Zensar Technologies has acquired the US-based ThoughtDigital and its holding company SOA Software for $ 24.9 mn. ThoughtDigital focuses on Oracle applications. The acquisition puts Zensar in a position to become one of the top 10 organizations for Oracle implementation globally. The acquisition will be funded through a mix of debt and internal accruals, with 60% coming from borrowings. The all-cash deal is structured with earn-outs to be paid over two years.

ThoughtDigital had revenues of $27 mn and an operating profit of $3 mn in 2006. It employs 120 Oracle consultants and its customer base includes firms like Gartner, Cingular Wireless, Primavera and USPS.

Read The Economic Times and Business Standard articles.

Fujitsu in talks to buy out Intelenet Global Services, eyes acquisitions in the IT space

Fujitsu, Japan's largest IT services company is in advanced stages of talks to buy out Intelenet Global Services, a Mumbai-based BPO. Intelenet is a joint venture between Barclays Bank of UK and HDFC. HDFC and Barclays each hold 50% in the venture. Fujitsu is reported to be in talks to buy out Barclays' stake and subsequently may also acquire HDFC's stake.

Currently, Fujitsu has a presence in India through two companies, Rapidigm, a 100% subsidiary, and Zensar Technologies, a joint venture company with the RPG group. Fujitsu acquired Rapidigm, a US-based BPO firm with operations in India, in February 2006.

Fujitsu does not have management control in Zensar and is thus also looking at acquisitions in IT services. Fujitsu is under pressure to build its presence in the fast growing Indian market.

For more, read The Economic Times article.