Zensar acquires digital commerce technology company Keystone Logic
The Pune-based IT company has made two acquisitions in five months to increase focus on digital services
Image: Mexy Xavier
Furthering its agenda of creating an information technology (IT) services company with a strong digital focus, Zensar Technologies Ltd, the IT arm of RPG Enterprises, announced the acquisition of Keystone Logic Solutions Pvt. Ltd on Thursday.
Zensar, which ended FY16 with revenues of $453 million, has been actively scouting for acquisitions that would enhance its capabilities in new-age digital services including artificial intelligence, machine learning, Internet of Things, and cloud computing.
Keystone Logic is an omnichannel and digital supply chain solutions company, headquartered in Bengaluru, with an office in Atlanta, US. “The company helps global retail and consumer brands with implementation of their order management and warehouse management,” said a statement issued by Zensar on Thursday. “It also helps with their integration with the digital commerce and omnichannel fulfilment strategy.”
For the 12 months ended December 31, 2016, Keystone Logic reported a turnover of $12.7 million.
This is Zensar’s second acquisition in five months. In November 2016, the Pune-headquartered IT company announced the acquisition of Foolproof, a UK-based digital design company with a focus on user interface and user experience design. This is part of Zensar’s chief executive Sandeep Kishore’s new strategy of moving the company up from the traditional model of being a vendor, providing enterprise applications support to clients, to a new model of becoming their digital solutions partner. Kishore took over the top job at Zensar in January 2016. In October 2015, private equity firm Apax Partner picked up a 23.2 percent stake in the company.
Harsh Goenka, chairman of RPG Enterprises and Zensar said: “Keystone’s market leadership in omnichannel and order management and the strong management team leading the business, are strategic to Zensar’s plan to increase market share in digital commerce. The integrated proposition of the two companies will augment the value Zensar delivers to its Retail and Consumer clients.”
Keystone Logic will bring marquee global brand clients into the Zensar fold, the statement said, in addition to 210 consultants employed with the firm, who have domain expertise in omnichannel fulfilment and digital supply chain. Keystone Logic will continue to be managed by its founder and CEO Ravi Joshi.
Zensar was advised by law firm Nishith Desai Associates for the transaction and KPMG. Keystone Logic's financial advisors were Sett & Lucas.
