Zensar Technologies acquires US-based strategy consultancy Cynosure
Indian IT services firm Zensar Technologies, a wholly owned subsidiary of the RP Goenka Group, has acquired US-headquartered strategy consultancy Cynosure. The transaction, which was worth more than $30 million, will give Zensar a boost in its insurance vertical, as well as access to Cynosure’s Guidewire capabilities.
Founded in 2013, Cynosure is an Illinois-based consulting firm, active in the strategy consultancy domain. The firm’s specialisation lies in the Property & Casualty as well as the insurance sectors, wherein it works with clients to offer project management and change management services.
Specifically, the firm offers support with business transformations, end-to-end programme delivery with the promise of a constant and stable team of experts, upgrades in organisational structure, digital strategy including the design of core products to facilitate the same, and data management.
Perhaps the firm’s most coveted services fall under the last category, i.e. data management, due to its strong expertise and capabilities in the Guidewire, DataHub and InfoCentre offerings. Guidewire, in particular, is specifically a property and casualty software, designed to conduct online analytics.
Now, Cynosure’s entire $20 million operation will be acquired by Indian technology services firm Zensar Technologies. The latter was founded in 1991 in Pune, and currently operates across the globe with nearly 8,500 employees and annual revenues of approximately $450 million.
As a predominantly tech-based firm, Zensar offers a range of automation and IT services in keeping with trends in the Indian tech space, including gravitation towards blockchain technology and the adoption of cloud-based platforms. Insurance services currently account for 15% of the firm’s total business, which is set to increase with the acquisition of Cynosure.
Zensar acquires the whole share capital of Cynosure, which includes its existing operation in Bengaluru, India. The firm has been acquired for $33 million, and will be financed through a combination of long-term investment earnings and the collection of external debt. In order to minimise disruption, Cynosure will continue to operate under the same leadership, and with the same teams across India and the US, comprising more than 150 experts.
Commenting on the acquisition, CEO and Managing Director at Zensar, Sandeep Kishore said, “The digitalisation of the insurance sector with reference to its products, sales channels and consumer engagement is increasingly driven by digital technologies. 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 modernisation with rich customer relationships that will serve as a significant value addition to our offerings.”
Sid Wadhwa, CEO and co-founder of Cynosure added; “As part of Zensar, we have the opportunity to offer more robust integrated solutions combined with its digital transformational and infrastructure capabilities. Our expertise in Guidewire platforms have enabled our customers in the P&C insurance space to reap long-lasting benefits which is now fortified by this combined entity."
