RPG Group owned Zensar Technologies has reportedly acquired the US-based firm, Cynosure, for $33 million. The acquisition comes as Zensar looks to strengthen its offerings and expand its presence in the US market. Cynosure is an IT services firm that primarily caters to mid-tier and smaller insurance clients.

“Zensar will look at more acquisitions to gain capabilities in retail and hi-tech as part of its return on digital strategy and grow its business faster”, Harsh Goenka, chairman of RPG Enterprises and Zensar Technologies, told The Economic Times.

According to the terms of the deal, post the acquisition, the founders of Cynosure, will continue to run the business with Co-founder Sid Wadhwa heading the insurance vertical at Zensar. Around 15 per cent of Pune-based Zensar’s revenues can be attributed to its insurance vertical, which services over 20 clients. Cynosure has a portfolio of 10 clients and currently employs around 150 employees, majority of its engineers in its offshore facility located in Bengaluru.

As per a press release, Zensar Technologies Limited will acquire the entire share capital of Cynosure Interface Solutions Private Limited (Cynosure India) and its wholly owned subsidiary, Zensar Technologies Inc. will acquire the entire share capital of Cynosure Inc, which is headquartered in Chicago, USA. Furthermore, the acquisition will be funded through a mix of internal accruals and external debt.

Cynosure was founded in 2013 and assists mid-tier insurance firms move to Guidewire, a platform for insurance players in the property and casualty segment. The company had a revenue of $20 million in 2017. Guidewire is the leading digital platform service in the small and medium size insurance segment in the US. It assists firms in digitising their core functions such as policies, claims, billing etc and improving their efficiency.

“We wanted to build a credible core insurance capability. We will be acquiring capability of Guidewire which is the platform most insurance companies globally are moving to,” Harsh Goenka added. “They typically look at the mid-market and smaller insurance carriers which is the fastest growing segment.”

Prior to the acquisition of Cynosure, Zensar acquired FoolProof and its three subsidiaries and the Bengaluru based firm KeyStone Logic Solutions. Cynosure is the third in the series of acquisitions made by Zensar in the past 18 months.

(Picture courtesy: bsiotr.org)