INDIA BUSINESS WORLD - DECEMBER 2005
THE MONTH THAT WAS

ZENSAR BUYS US SAP CO FOR $4 M

Zensar Technologies announced the acquisition of US-based OBT Global and Hyderabad-based offshore affiliate OBT Global India in an all-cash transaction.
While there was no official confirmation, the acquisition is believed to have been made for $3-4 million. OBT is a services provider in SAP implementation and support, ABAP programming and SAP help desk services. It has 162 employees at its two locations. During 2004, its revenue stood at $3.35 million while its estimated revenue for 2005 is $4.46 million. OBT was set up in 1998, and following the acquisition, its CEO, Ramesh Kodali, will join the Zensar management council. Ganesh Natarajan, vice-chairman and managing director, Zensar, said OBT will set up support centres in Pune and Mumbai for SAP implementation.

“OBT has a textile and pharma focus while Zensar has strength in the retail space. This practice will be set up at our Pune centre while later we could consider setting up satellite centres in Mumbai and Delhi. These will provide help desk and support to OBT's existing domestic client base,” Mr Natarajan stated. The global business will continue to be handled out of Hyderabad and Pune.
OBT currently has 140 people in India, which is set to rise to about 260 by December ‘06. Zensar has 480 people in the ERP practice, 150 in Hyderabad. This number, too, will rise so that the Hyderabad centre will have 400 people. A statement released here quoted Harish Goenka, chairman, Zensar Technologies, as saying, “This acquisition positions us well to expand into SAP, a fast-growth segment of the industry.”

Zensar Technologies is a joint venture between the RPG Group and Fujitsu Services of the UK. Its industry expertise spans retail, banking, finance, insurance, telecommunications, utilities and manufacturing, and has over 2,500 employees.