Zensar to acquire Cynosure for US$33million

Zensar, an RPG company, is on the move to acquire the US-based Cynosure Inc. for US$33 million. Cynosure focuses on providing Guidewire platform implementation services to property and casualty (P&C) insurance carriers.

The Insurance vertical currently accounts for approximately 15% of Zensar’s total business, The addition of Cynosure will enable Zensar to have platform capabilities for the insurance segment that will position the Company to grow faster in the fast-growing Insurance software market.

Cynosure Incorporated is based in Chicago and Cynosure India is headquartered and has an offshore development centre in Bengaluru. The company reported revenues of about US$20 million for 2017.

The acquisition will be funded by a mix of internal accruals and external debt.

This is Zensar's third acquisition in less than 18 months as the company's business is moving towards digital technology such as automation, machine learning, artificial intelligence and block chain. Post acquisition Cynosure will be handled by its founders, but the management and team will become a part of Zensar's insurance vertical

Meanwhile, during Thursday's trade the stock has opened at Rs. 941.90 and touched a high/low of Rs. 945.35/Rs. 924 per share. The stock is quoting Rs. 924, which is up by 1.64 per cent at 11:23 hours on Thursday.