Talks are underway between the promoters of mid-sized competitor Mastek and IT giant Zensar Technologies to purchase an 18% to 20% share. Although negotiations have not yet concluded, the value of the potential acquisition is believed to be more than $200 million and may perhaps reach $400 million.The long-planned sale of Mastek’s promoter holding is still on hold until the parties involved reach a consensus on the enterprise value of the company. The promoters have long desired to sell, but their present projections place the deal’s value at nearly twice the company’s current market valuation.Zensar Expanding its IT PortfolioZensar, a company based in Pune, will reduce the promoters’ investment in Mastek from its existing levels of roughly 50% to 18% to 20%. According to BSE records, 35.77% of Mastek is currently owned by promoters and organisations associated with promoter groups. With its large margins and efficient player, Zensar is a formidable opponent. This acquisition, if finalised, will allow them to expand their operations and acquire new capabilities.The planned sale occurs as Mastek is seeing its market share eroded by competitors with larger operations. Infosys Ltd was recently awarded a $1.6 billion IT modernisation contract by the National Health Service, the… Read MoreStartupTalky- Business News, Insights and Stories
