New Dehli: Zensar Technologies Ltd is set to acquire BridgeView Life Sciences, an American information technology (IT) and operations services firm, in an all-cash deal valued at $14 million, the company said on Wednesday.
An additional $11 million may be paid by 31 December 2027, contingent on BridgeView meeting specific performance and employment milestones, according to regulatory filings.
BridgeView offers advisory, transformation, and managed services, with a focus on serving life sciences clients. It specialises in product launches, operational optimisation and mergers and acquisitions (M&A) consultancy.
The acquisition aligns with Zensar’s strategy to fill portfolio gaps and pursue growth opportunities, and will strengthen its healthcare and life sciences division, one of its four business vertical, the company’s management said in a press statement.
Also Read: KKR, GIC & DigitalBridge in fray to acquire Carlyle’ Nxtra stake
“This is a growth-oriented acquisition for us,” said Pratik Maroo, head of healthcare and life sciences, Zensar. “The current size (of the business) is small compared to the market potential when you look at the amount of dollars that get spent in pharma and biotech space, particularly during product launches.”
More acquisitions
Zensar is also on the lookout for more acquisitions to expand businesses across its four verticals, said Anant Goenka, vice-chairman, Zensar. The company has $260 million in cash, primarily earmarked for M&As and other business expansion activities. Zensar evaluates 100-150 companies annually for inorganic growth opportunities, resulting in 2-3 transactions, he added.
“If we can, we will be happy to continue to look at maybe two or three (acquisitions a year), depending on the size. This (BridgeView) is small. We have enough appetite for more (acquisitions).”
According to Goenka, the RPG Group, with an annual turnover of $4.8 billion, is also on the lookout for acquisitions at other group companies, including its engineering and construction firm KEC, tyre maker Ceat, and pharmaceuticals firm RPG Life Sciences.
“The domestic formulation market is something where the prices are quite high. Valuations are very, very rich, and not yet justifying an acquisition at the currently available valuation.”
However, the RPG Group will be actively eyeing both domestic formulation as well as API (active pharmaceutical ingredient) makers for acquisition opportunities at the right valuation, he added.