Zensar Technologies Ltd is to divest its entire stakeholding in Aquila Technology Corp to Business Integra Technology Solutions for about $600,000 in cash and an additional deferred earn-out payment of $600,000.
The cash payment is to be provided partly on the signing date and partly on fulfilment of certain conditions, while the earnout payment is based on performance set out in the agreement for sale, Zensar Technologies said in a regulatory filing.
The stake in Aquila Technology Corp is held by Zensar Technologies’ US subsidiary Zensar Technologies Inc.
On Thursday, Zensar Technologies, an RPG Group company, entered into a deal to divest the stake to Business Integra Technology. It also received board approval for the same.
The deal is expected to close on March 4, or when the closing conditions are fulfilled, whichever is earlier, it said.
Aquila Technology was acquired by Zensar Technologies Inc as part of the group acquisition of PSI Holding Group Inc in 2010.
Aquila provides information technology and consulting services to the US Government and its contractors. Based on the service agreement between Aquila and a customer, which requires separation of its operations and lack of interdependence of Aquila on its related affiliates or parent, the Zensar Group has no ability to direct the relevant activities of and exercise control over Aquila.
Accordingly, with a view to focus on the core businesses of Zensar group, over which it can exercise control, it is proposed to divest the investment in Aquila, it said in a statement.