Tech Mahindra announces the acquisition of Zen3 Infosolutions, an American-based AI company, for $64 million in an all-cash transaction. The deal is expected to close in by 1 April this year. The Indian subsidiary of Zen Group will be acquired by Tech Mahindra (India) and the Zen3 Infosolution (America) will be acquired by the Tech Mahindra (America).
However, out of the $64 million, only $42 million will be paid out while closing the deal, and another $22 will be given over three years linked to the American company’s financial performance.
Zen3 has expertise in software product engineering, DevOps testing, machine learning, AI and analytics. Tech Mahindra in the filing to the BSE mentioned that the acquisition will enable the firm to offer various AI-enabled services. Zen3 is also a cloud-native organisation that delivers cloud services. Being a Microsoft Gold partner, the firm provides cloud solutions to help firms gain operational efficiency, reduce costs, and more.
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Some of the prominent Zen3 solutions are conversational analytics solution — www.sayint.ai — to server the call centre market, which was launched in 2016. Besides, after adding AI capabilities in 2017, Microsoft SQL server team showcased Zen3 as the go-to solution for contact centres.
Zen3 is 1,300 employees strong with offices in Seattle, Dublin, Bengaluru, Hyderabad, and Vishakapatnam. Founded in 2013, the company has quickly gained traction in AI and other IT services. In 2018, the firm got $38 million in revenue and the revenue for the six-month period ending June 30, 2019, was $25 million.
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Over the year, Tech Mahindra has acquired AI firms to continue advancing its AI ability. In November last year, the firm agreed to acquire Born Group Pte Ltd and its Indian unit. Tech Mahindra is showing promise in enhancing its services in the AI industry with continuous acquisitions of AI-based firms.