Zensar Technologies gets insurance capability with Cynosure

Zensar Technologies announced that it is acquiring US-based IT firm Cynosure that focuses on mid-tier and smaller insurance clients for $33 million. As a part of the agreement, Zensar will acquire 100 percent stake in Cynosure for $31 million, plus pay earnouts over 24 months after the deal is closed.

Harsh Goenka, chairman of Zensar Technologies said, "We wanted to build a credible core insurance capability. We will be acquiring the capability of Guidewire which is the platform most insurance companies globally are moving to. They typically look at the mid-market and smaller insurance carriers which is the fastest growing segment.”

Cynosure, founded in 2013, caters to mid-tier insurance firms. Its in-house platform Guidewire allows insurance companies to integrate various insurance practices, geared towards helping them go digital.

Sid Wadhwa, CEO and co-founder, Cynosure, said, “As part of Zensar, we have the opportunity to offer more robust integrated solutions combined with its digital transformational and infrastructure capabilities. Our expertise in Guidewire platforms has enabled our customers in the P&C insurance space to reap long-lasting benefits which are now fortified by this combined entity.”

The move is aimed at expanding Zensar’s foothold in the growing property and casualty insurance sector. Post the acquisition, Cynosure will be managed by its founders, while its US and Bengaluru-based teams will be joining Zensar’s insurance vertical.

Additionally, under the agreement, Zensar will also acquire Bangalore-based offshore centre Cynosure Interface Solutions for $2 million. The transaction is expected to close within the next three months.