IT company Zensar acquired UK-headquartered user experience design company Foolproof and its three wholly owned subsidiaries for an undisclosed amount in its efforts to grow its digital business.
Founded in 2002, Foolproof is headquartered in London, UK. It is known for working in the customer experience/ user experience space. The company provides consulting and design services to global corporations in defining and managing user experience for their products and services in various verticals like banking and financial services, auto, retail, technology and life sciences. Boasting customers such as HSBC, Google, Shell and Allianz, Foolproof has reported revenue of £8 million in 2015. Banking and financial services contribute a half of its revenue. The company works with over 100 employees in London, Norwich, and Singapore.
In a presentation filed with the Bombay Stock Exchange, Zensar said that the acquisition of Foolproof will add to the company’s earnings per share. They also mentioned that the acquisition was funded through internal accruals, and will be earning per share (EPS) positive for the company. In a statement, the company’s CEO, Sandeep Kishore, said,
This acquisition fortifies Zensar’s digital offerings and furthers the company’s ability to work with CMOs and CDOs to improve outcomes for their customers, and to drive innovation through design.
As a result of the acquisition, Zensar Technologies has moved higher by 15% to Rs 1,070 on BSE in intra-day. Making it official, the company said in a press release,
Zensar Technologies (UK), a wholly owned subsidiary Zensar Technologies, an RPG Company and the shareholders of Foolproof, announced that they have entered into a definitive agreement for Zensar to acquire Foolproof along with its three wholly owned subsidiary companies in the UK and one wholly owned subsidiary company in Singapore for an undisclosed amount.
With this acquisition, around 30% of Zensar revenue will be through Digital services. Foolproof’s experience design capabilities in the UK will enable Zensar to provide end-to-end digital services for the CMO and CDO organizations, Zensar Technologies said.
At 03:07 pm yesterday, the stock was up 12% at Rs 1,045 on BSE, as compared to 1.2% decline in the S&P BSE Sensex. A combined 419,002 shares changed hands on the counter on BSE and NSE so far. Foolproof will continue to be operated under its own brand name and will be managed by founders Peter Ballard and Tom Wood.