Private equity major Apax Partners, through unit Marina Holdco, has agreed to acquire 23.2% equity stake in RPG Group company Zensar Technologies from Electra Partners Mauritius, an existing minority shareholder.
Although Apax did not offer financial details, it is estimated that the size of the acquisition could be about Rs 860 crore. Since the proposed deal is below the Securities and Exchange Board of India (Sebi) threshold limit of 25% and also does not give Apax control of the company, there will be no open offer.
RPG Group will continue to be the promoter and the largest shareholder in the company with a 48% stake. While the transaction was announced after market hours, on Friday, shares of Zensar Technologies was up 1.8% at Rs 841.10.
UK-based Apax Partners is one of the largest investors in IT and IT-enabled services. In April this year, Apax had exited from IGATE when the technology major was acquired by Capgemini for $4 billion (Rs 26,000 crore).
Zensar is one of India’s leading providers of technology services with a strong presence in e-commerce solutions and a long track record of delivering shareholder value creation for more than 20 years.
Zensar chairman Harsh Goenka said: “The association with Apax is expected to bring significant value to the company. Zensar is a key focus area for the RPG Group and we aim to scale the company into a top-10 Indian technology services business in the medium-term, through a combination of organic growth and M&A.”