Zensar Technologies, an IT and infrastructure services provider has announced that it has entered into a definite agreement for the purpose of acquiring a US-based digital marketing firm known as Indigo Slate for $18 million. This amount will be paid in advance and there will be some amount which will be paid in future based on the performance over the next three years or so.
Founded in 2006, Indigo Slate is a technology company that focuses on providing services like digital marketing initiative, website content design, mobile site creation. The company showed a revenue of approximately $20 million in the financial year 2018.
“We are one of the leading players in the digital space within the country and nearly about 40 percent of Zensar’s turnover comes from its digital play which is very high compared to most of its other colleagues in the industry,” said Harshvardhan Goenka, chairman, Zensar Technologies.
This acquisition is expected to strengthen the capability of Zensar Technologies in this fast-growing segment. It would add capabilities to offer digital marketing services for clients in the US, its largest market.
Prior to this acquisition, Zensar acquired another US-based company called Cynosure with an aim to strengthen its offerings for the insurance sectors. On the other hand, Indigo Slate brings extensive expertise in having managed cutting-edge projects with global brands such as Google, T-Mobile.
“For us, it is very critical because we were looking for these kind of expertise in the US which garners 75% of our revenues. This will give us an opportunity to execute the CMO-led digital strategy in the US and will complementary capabilities. Through their design, content creation and consulting capabilities we advise our clients on their digital marketing initiatives,” Goenka added.
Through this move, Zensar would acquire the whole share capital of Indigo Slate and that will be funded by a group of the internal sources of investments and external debt.