Zensar will head to Japan next

Pratima Harigunani

PUNE: After announcing the acquisition of US-based ThoughtDigital LLC for $24.9 million, in an all-cash deal, the next target on Zensar’s radar would be deals for new geographies like Japan and South Africa.

The recent deal that would give Zensar access to the Eastern Coast of the US would possibly be the only strategic acquisition on the company’s drawing board for now.

“Our mode now would be partnerships, joint ventures or collaborations i.e. practical avenues for expansion in new markets like Japan,” said Ganesh Natrajan, managing director of Zensar. “The recent acquisition of ThoughtDigital is the only strategic one and would help us consolidate our Oracle side. The mandate of beefing up on Oracle pie was on forth last six months and in the last two months we materialized this deal.”

The deal is expected to up the company’s Oracle business to $100 million in the next few years, he added.

Commenting on the brewing buzz about Fujitsu stake sale to RPG in Zensar, Natrajan said, “Nothing has been finalized. Both the partners are on good terms and there is no urgency now. RPG may well consider consolidating its stake in Zensar as it sees this as core to its business. For Zensar, however, it wouldn’t really matter if three major shareholders come down to two. We are a board managed company, such stake sale, if any, won’t have any real business impact. The revenue slice of both is less than five per cent anyhow.”

He also denied possible competitive implications if Fujitsu starts a captive unit in India. “Till now we have been handling joint clients overseas who are very dependent on Zensar. New business might be a concern area but not existing business.”

The Economic Times newspaper had on Friday reported that Fujitsu Consulting, which holds 29 per cent stake in Zensar, was "believed to have sold" its stake to the RPG group, which holds around 30 per cent stake in Zensar.

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