Tech Mahindra to acquire AI-based Zen3 Infosolution in all cash deal

Tech Mahindra will now acquire the AI-based Zen3 Group for $64 million for a 100 percent stake in the company.

In Bombay Stock Exchange filing, Tech Mahindra said it will pay around $42 Million in cash at the time of closing the deal. The remaining balance of $22 Million will be paid in the coming next three years, depending on the financial performance of the company.

Founded in 2013, Seattle headquartered Zen3 provides its services via its three flagship products. Datamime, which curates data across multiple media formats in more than 20 languages. The company offers AI enablement services, AI speech solutions and Cloud engineering services.

Its database migration assessment tool AcuityPath helps companies to manage the data workflows. Its third product, Saynit, is a speech analytics platform that gathers helpful insights from the conversations of the customer.

Executive Opinion

Tech Mahindra in Bombay Stock Exchange filing, said, "The board of directors of the company has approved the proposal to acquire a 100 percent stake in Zen3 Infosolutions (America) Inc. directly and through its wholly-owned subsidiary, Tech Mahindra (Americas), Inc."

Tech Mahindra's Zen3 Acquisition

Tech Mahindra Limited, India will take over Zen3 Infosolutions Private Limited while Tech Mahindra's American arm will take over Zen3 Infosolutions at Americas. The other Zen Group companies will be also part of the acquisition, notes the filings.

Zen3 Capabilities can be used by the Tech Mahindra in developing various voice-based applications and autonomous car projects.

Zen3 counts various large corporations from all across sectors such as Disney, Microsoft, KPMG, EY, Amazon, Apple, and Deloitte among its clients base. The company has offices in Hyderabad, Vishakapatnam, Dublin, and Bangalore, which employs around 1300 people.

The acquisition will close on 1st April 2020.