Zensar Technologies Makes $14 Million Move: Acquires Bridgeview Life Sciences, Looks for More Deals

New Delhi: Zensar Technologies Ltd. plans to acquire BridgeView Life Sciences, a US-based information technology and operations services company, for $14 million in cash, the company said on Wednesday.

An additional $11 million could be paid through Dec. 31, 2027 if BridgeView meets certain performance and employment goals, according to regulatory filings.

Services provided

BridgeView provides consulting, transformational and managed services primarily to life sciences clients, focusing on product launch, operational improvement and M&A advisory.

The acquisition is in line with Zensar’s strategy to close gaps in its portfolio and pursue growth opportunities. It will strengthen Zensar’s Healthcare and Life Sciences business, one of its four business areas, the company said in a statement.

“This is a growth acquisition for us,” said Pratik Maroo, head of healthcare and life sciences at Zensar. “The current size of the company is small compared to the market potential, especially considering the spending in the pharmaceutical and biotech sector, especially during product launches.”

More acquisitions ahead

Zensar is also planning more acquisitions to grow its businesses in four key areas, said Anant Goenka, vice president at Zensar. The company has $260 million in cash, mostly for M&A and other expansionary activities. Zensar evaluates 100-150 companies a year for growth opportunities, resulting in 2-3 deals a year.

“We’re happy to look at two or three acquisitions a year, depending on the size. This one (BridgeView) is small. We have a big appetite for more acquisitions.”

RPG Group

RPG Group, which has an annual turnover of $4.8 billion, is also considering acquisitions of other group companies, including engineering and construction firm KEC, tyre maker Ceat and pharmaceutical firm RPG Life Sciences, Goenka added.

“The domestic formulation market has very high prices and valuations that do not justify an acquisition at current levels,” he said. However, RPG Group will continue to look for both domestic formulation and API (active pharmaceutical ingredient) manufacturers for acquisition opportunities at appropriate valuations.