WESTBOROUGH, Mass. and MUMBAI, India: PSI Holding Group, Inc., the parent company of Akibia, Inc., and Zensar Technologies, Inc. USA today announced that the two companies have entered into a definitive agreement for Akibia to merge with Zensar's wholly-owned US subsidiary. Under the terms of the agreement, Zensar will offer to acquire all of the outstanding stock of PSI through a merger.
The combination of Akibia and Zensar will allow Akibia to offer its customers in the United States and Europe a wide-range of solutions for infrastructure management and support, security and compliance and risk management by building on dual-shore capability. Further, being part of publicly-traded Zensar gives Akibia access to greater financial resources and greater capabilities to meet customer needs with new and expanding solutions.
The merger extends the reach and breath of Zensar's Remote Infrastructure Management (RIM) offshore services for global clients by combining with Akibia's proven Data Center Services in the United States and Europe. Zensar will now be well-positioned to deliver solutions that can transform the future of IT Infrastructure Management.
In announcing the agreement, Mr. Thomas Willson, Akibia's Founder and Executive Chairman, said, "The combination of Akibia with Zensar will broaden the capability that each company will bring to its customers. Zensar has a long history of bringing innovative, quality IT solutions to its customers, and Akibia has been a trusted advisor to our customers for over 20 years."
Mr. Thomas Tucker, President and CEO of Akibia, said, "By joining forces with Zensar, we will accelerate our ability to deliver on our vision of bringing innovative services that reduce costs and increase efficiency to our global customer base. Already our clients' trusted advisor, the addition of Zensar's capabilities and resources allows us to further enhance the mission-critical services we bring to our customers.
Mr. Harsh Goenka, Chairman of RPG and Zensar, said, "The combination of the two companies will enhance the value Zensar delivers to customers. It is strategic to Zensar, as Akibia is a key player in the infrastructure management space with revenues of over $100 million US Dollars and a robust management team in the US and Europe.
"Zensar's Infrastructure Consulting and Data Center Management capabilities, with Akibia's cumulative knowledge, experience and best practices of supporting and securing mission-critical data centers will give us a full life-cycle capability to service global customers. Akibia will add over 300 outstanding global employees to the Zensar team," said Dr. Ganesh Natarajan, Vice Chairman & Managing Director of Zensar.
Expanded Opportunities for Zensar and Akibia:
For Akibia, joining Zensar will provide global operational scale and the ability to penetrate new geographies and markets more efficiently, thereby accelerating its growth. The enhanced capability will allow bidding for projects that involve broader services by leveraging Zensar's offshore capability.
For Zensar, the combination will significantly expand its market and growth potential, broadening solutions Zensar provides to the rapidly growing Infrastructure markets. It will also expand Zensar's offering of mission-critical solutions to the enterprise customer.
Akibia will become a new business unit within Zensar and Akibia's Founder & Chairman, Thomas Willson and its President & CEO, Thomas Tucker, will join the management council of Zensar. Akibia's management team and over three hundred employees will be integrated into Zensar's Global Delivery model to retain and enhance the service offerings to the customers of both companies.
The completion of the transaction, which is subject to customary government approvals and the satisfaction of other customary conditions, is expected to close in the current quarter.
Forward-Looking Statements Disclosure
About Akibia: (http://www.akibia.com)
Akibia provides innovative IT solutions that enable leading companies worldwide to optimize, secure, manage and support their mission-critical infrastructure. Akibia delivers solutions that improve the availability, reliability and performance of data centers, network and security infrastructures. Combining expert consulting, integration and support services with world-class customer service, Akibia helps IT organizations reduce costs, increase efficiencies and manage risk in the data center. Founded in 1988, Akibia is an independent IT services company with offices throughout the United States and Europe.
About Zensar Technologies (http://www.zensar.com)
Zensar Technologies is among the top 20 software services providers from India. Zensar is the world's first enterprise-wide SEI CMM Level 5 Company and was also later certified as a CMMI Level 5 Company with industry expertise that spans Retail, Manufacturing, Banking, Insurance, Utilities, Healthcare and Life Sciences. An RPG Group company, Zensar has more than 5500 employees with sales and operations presence across US, UK, Germany, Sweden, Finland, Middle East, South Africa, Singapore, Australia, China and Japan. The Company delivers comprehensive services in mission-critical applications, enterprise applications, e-business, BPO and Knowledge Services. The Company has developed tools and methodologies, including the proprietary Solution BluePrint (SBP), which enables its clients with innovative business solutions and a rapid 'go-to-market' capability. The Company supports Fortune 500 clients with software business solutions that help them compete in the digital economy.
About RPG Enterprises (http://www.rpg.in)
RPG Enterprises is one of India's largest industrial conglomerates. With over 16 companies in its fold, the group has a strong presence in 8 business sectors. Established in 1979, RPG Enterprises is one of India's fastest growing business groups with revenue of $3.6 billion. The group has more than sixteen companies managing diverse business interests in the areas of Power, Tyre, Infrastructure, IT, Retail, Entertainment, Carbon Black and Speciality.
Safe Harbor
Certain statements in this release concerning our future growth prospects are forward-looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.
www.zensar.com
SOURCE Akibia, Inc.
