Zensar to divest non-core TPM/MVS business; stock opens 0.54 per cent higher
Zensar Technologies Ltd announced on Monday after the market hours that it has entered into an agreement to divest its global third-party maintenance (TPM) business with Service Express LLC.
Zensar aims to focus on its core businesses and invest in the same. The company partners with global organisations on their digital transformation journey. Application management services contributed to the maximum of the consolidated revenue (82.32 per cent) whereas, infrastructure management services contribute to the rest. The USA contributes the maximum of the revenue generation (71.90 per cent).
TPM business provides the third party hardware maintenance support for data centre equipment and platforms. These services include call handling, remote support, spare parts, logistics management, replacement & installation, repairs, and field support. Zensar had earlier divested into the RoW business last year and is now divesting into the TPM business.
Zensar’s TPM business will be transferred to Service Express, a leading TPM service provider by way of a 100 per cent share sale of Zensar’s equity shareholding in PSI Holding Group Inc., a wholly-owned subsidiary of Zensar Technologies Inc. Sale consideration comprising of USD 10 million in cash on the closing date, subject to closing conditions and an additional deferred earnout of USD 5 million, based on the performance, set out in the stock purchase agreement. The closing of the transaction is subject to approval by shareholders of the company.
Reacting to its announcement, the stock opened today at Rs 186.40, 0.54 per cent higher.