Zensar Tech in 5-year IT support pact with Assurant Health

Moneycontrol Bureau

Software services exporter Zensar Technologies has signed a five-year agreement with Assurant Health, a US-based provider of health insurance products, to provide information technology support.

"The relationship spans development, testing, maintenance, enhancement and IT support for a suite of business applications used by Assurant Health for policy administration, underwriting and claims processing," the RPG Group company said on Tuesday.

Ganesh Natarajan, Zensar's CEO, said that insurance and healthcare are both focus verticals for the company in North America and this deal falls in the "sweet spot" of growth.

The Pune-based company is scouting for acquisitions in the USD 30-40 million range and a deal is likely to be done 2013-14, Natarajan told moneycontrol.com, earlier this month. It is seeking to buy companies in the SAP and infrastructure management space.

Zensar Technologies aims to increasingly focus on large clients and is therefore closing smaller projects, where growth opportunities and margins are limited. It has already shut down 75 small clients, Natarajan had said.

Zensar shares were up 0.3 percent at Rs 240.85 on NSE in noon trade.