Zensar will acquire Cynosure for
about $33 Million, a move that will help the Indian IT firm strengthen its play
in the insurance vertical. Cynosure focuses on providing Guidewire platform
implementation services to Property and Casualty (P&C) insurance carriers
and clocked revenues of about $20 million in 2017.
The acquisition will be funded by a
mix of internal accruals and external debt. As part of the deal, the entire
share capital of Cynosure Interface Solutions (Cynosure India) will be acquired
for an amount “not exceeding Rs13 crore”. Zensar Technologies Inc. -- a wholly
owned subsidiary of Zensar -- will acquire the entire share capital of Cynosure
Inc. for “approximately $31 million and deferred payments.
Cynosure has an offshore
development centre in Bengaluru, India. “Cynosure is a Guidewire partner, and
is well respected in the market place, making them experts in this area. They
bring successful implementations, providing core system modernization with rich
customer relationships that will serve as a significant value addition to our
offerings.
