SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, D.C. 20549

                                 FORM 8-K

                              CURRENT REPORT
            PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
                          EXCHANGE ACT OF 1934


    Date of Report (Date of earliest event reported) December 4, 2003


                               ZANETT, INC.
-------------------------------------------------------------------------
            (Exact name of registrant as specified in charter)


        Delaware                    0-27068                56-4389547
-------------------------------------------------------------------------
(State or other jurisdiction  (Commission File Number)    IRS Employer
   of incorporation                                   Identification No.)


135 East 57th Street, 15th Floor, New York, NY               10022
---------------------------------------------              ------
(Address of principal executive offices)                 (Zip Code)


Registrant's telephone number, including area code        (212)-980-4600
                                                          --------------
-------------------------------------------------------------------------



      (Former name or former address, if changed since last report).
      -------------------------------------------------------------



















<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant, Zanett, Inc., a Delaware corporation (the
"Company"), hereby files this Current Report on Form 8-K describing its
acquisition of DeltaData, Inc., a California corporation doing business
as Delta Communications Group, Inc., ("Delta"). This Current Report on
Form 8-K contains forward looking statements that involve risks and
uncertainties relating to this acquisition and actual results and
developments may differ materially from those described in this Current
Report. For more information about the Company and risks relating to
investing in the Company, refer to the Company's most recent quarterly
report on Form 10-QSB and annual report on Form 10-KSB.


Item 2.     Acquisition or Disposition of Assets

Zanett, Inc. is building the IT Commonwealth (TM) - a business model that
seeks to combine private, independent technology companies into a public
enterprise, with the goal of making them collectively stronger, more
competitive and more profitable. The IT Commonwealth (TM) seeks to
preserve the management, culture, identity and operating style of its
members while achieving advantages of scale. It also attempts to bring
successful entrepreneurs and companies together into a collaborative
network, where each member continues to do what they do best, while
contributing to the financial and operating performance of the IT
Commonwealth (TM) as a whole.

On December 4, 2003 (the "Closing"), the Company acquired its fourth IT
Commonwealth (TM) member. Pursuant to the terms of the Agreement and Plan
of Merger (the "Merger Agreement") dated as of November 30, 2003, among
the Company, Zanett Merger Sub DCG, Inc., a wholly owned subsidiary of
the Company ("Merger Sub"), DeltaData, Inc., and Howard Norton, the
Company acquired Delta through a merger (the "Merger") of Delta with and
into Merger Sub. Upon consummation of the Merger, the separate corporate
existence of Delta ceased and the name of Merger Sub was changed to Delta
Communications Group, Inc. ("New Delta"), which is a Delaware
corporation.

Delta is a leading voice and data networking services integrator
providing communications security, design and implementation solutions to
Fortune 500 caliber companies and governmental agencies.  It maintains
strategic alliances with key manufacturers and communications vendors to
offer its clients with a comprehensive set of analysis, architecture,
project management, remote monitoring, network audit, componentry and
wide area networking solutions

The aggregate consideration to be paid by the Company to all Delta
shareholders (the "Delta Shareholders") will be comprised of the initial
cash consideration of $328,370, the initial stock issuance of 89,255
shares of the Company's common stock ("Common Stock"), the assumption of
$436,630 of debt and future contingent consideration to be paid upon
achievement of specified milestones described below.  The Common Stock
issued at closing was valued at $254,377 for accounting purposes based on
the average closing price for the three trading days prior to the
Closing.

The Delta Shareholders are eligible to receive contingent consideration
in each of the three successive annual periods commencing December 1,
2003 based upon New Delta attaining specified earnings targets in each
period.  The contingent consideration in each period consists of a
payment of $145,000 in cash and the issuance of a number of shares of
Common Stock determined by dividing $321,666 by the average closing price
of the Common Stock for the ten trading days immediately preceding the
issue date for each period.  For accounting purposes, the value of the
Common Stock issued for each annual performance period will be determined
based on the closing price of the Common Stock for the trading day
immediately preceding the resolution of the contingencies.

The annual contingent consideration will be paid to the Delta
Shareholders only if New Delta's earnings before interest, taxes,
depreciation and amortization ("EBITDA"), as defined in the Merger
Agreement, equal or exceed certain thresholds specified in the Merger
Agreement.  However, if the Delta Shareholders fail to meet the EBITDA
requirements in any of the annual performance periods, they will be
entitled to receive such amounts of annual contingent consideration not
previously paid after the end of the third performance period if New
Delta generates cumulative cash remittances for the three performance
periods taken as a whole in excess of the threshold specified in the
Merger Agreement.

The Delta Shareholders are also eligible to receive additional contingent
consideration at the end of the period commencing December 1, 2003 and
ending on November 30, 2006, based upon New Delta attaining specified
earnings targets for such period.  This additional contingent
consideration consists of the issuance of a number of shares of Common
Stock determined by dividing $400,000 by the average closing price of the
Common Stock for the ten trading days immediately preceding the issuance
of Common Stock for such period.  For accounting purposes, the value of
the Common Stock issued for additional contingent consideration will be
determined based on the closing price of the Common Stock for the trading
day immediately preceding the resolution of the contingencies.

The maximum aggregate consideration will be approximately $2.4 million,
of which approximately $1.0 million was paid at Closing as the initial
consideration and approximately $1.4 million will be paid as contingent
consideration. The Company estimates that transaction costs associated
with the acquisition of Delta will total approximately $200,000.

The Common Stock issued or issuable to the Delta Shareholders pursuant to
the Merger Agreement (the "Shares") is subject to certain transfer
restrictions until November 30, 2008 pursuant to lock-up agreements
executed by Delta Shareholders.  A portion of the Shares will be released
from such restrictions when the closing bid price per share of the Common
Stock equals or exceeds certain price targets.

The Company funded the cash portion of the purchase price paid at Closing
from existing cash on hand.

In connection with the Merger, New Delta entered into employment
agreements with the Chief Executive Officer and the Vice-President, Sales
of New Delta.  Pursuant to the employment agreements, each will be
employed by New Delta for a four-year period unless earlier terminated.
Should the employment of the Chief Executive Officer be terminated, he
will be entitled, under certain conditions, to receive specified
severance benefits. New Delta also entered into a Consulting Agreement
with two outside contractors of Delta who will continue as contractors of
New Delta after the Merger until December 5, 2008.

Copies of the Merger Agreement, the Employment Agreements, the Consulting
Agreements and the Lockup Agreements are attached as Exhibits 2.1, 10.1,
10.2 10.3, 10.4, 10.5, and 10.6.  The foregoing description is qualified
in its entirety by reference to the agreements filed herewith as
Exhibits.

Item 7.      Financial Statements, Pro Forma Financial Information and
Exhibits.

     (a)     Financial Statements of Businesses Acquired.

In accordance with Item 7(a)(4) for Form 8-K, the Registrant intends to
file such financial information as an amendment to this Form 8-K within
60 days of the date this 8-K is required to be filed.

     (b)     Pro Forma Financial Information

In accordance with Item 7(b)(2) for Form 8-K, the Registrant intends to
file such financial information as an amendment to this Form 8-K within
60 days of the date this 8-K is required to be filed.

     (c)     Exhibits

2.1*        Agreement and Plan of Merger
10.1        Employment Agreement with Howard Norton
10.2        Employment Agreement with Robert Anderson
10.3        Consulting Agreement with Ricky Monteilh
10.4        Consulting Agreement with James Bucklin
10.5        Lock-up Agreement with Howard Norton
10.6        Lock-up Agreement with Ruby Norton
99.1        Press release, dated December 8, 2003, announcing the
            acquisition of Delta Communications Group, Inc.

*  Exhibits and schedules omitted.  The Registrant will furnish a
supplementary copy of any omitted exhibit or schedule to the Commission
upon request.

















<PAGE>
SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.


                                          ZANETT, INC.


Date:   December 19, 2003           by:   /s/ Jack M. Rapport
                                    Name:  Jack M. Rapport
                                    Title: Chief Financial Officer



Index to Exhibits

2.1*        Agreement and Plan of Merger
10.1        Employment Agreement with Howard Norton
10.2        Employment Agreement with Robert Anderson
10.3        Consulting Agreement with Ricky Monteilh
10.4        Consulting Agreement with James Bucklin
10.5        Lock-up Agreement with Howard Norton
10.6        Lock-up Agreement with Ruby Norton
99.1        Press release, dated December 8, 2003, announcing the
            acquisition of Delta Communications Group, Inc.

*  Exhibits and schedules omitted.  The Registrant will furnish a
supplementary copy of any omitted exhibit or schedule to the Commission
upon request.
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{"company-data": {"conformed-name": "ZANETT INC", "cik": "0001133872", "assigned-sic": "7389", "irs-number": "564389547", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-32315", "film-number": "031065747"}, "business-address": {"street1": "135 E 57TH STREET", "street2": "15TH FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10022", "phone": "2127595700"}, "mail-address": {"street1": "135 E 57TH ST 15TH FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10022"}, "former-company": {"former-conformed-name": "PLANET ZANETT INC", "date-changed": "20010206"}}
SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, D.C. 20549

                                 FORM 8-K

                              CURRENT REPORT
            PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
                          EXCHANGE ACT OF 1934

    Date of Report (Date of earliest event reported) December 4, 2003

                               ZANETT, INC.
-------------------------------------------------------------------------
            (Exact name of registrant as specified in charter)

        Delaware                    0-27068                56-4389547
-------------------------------------------------------------------------
(State or other jurisdiction  (Commission File Number)    IRS Employer
   of incorporation                                   Identification No.)

135 East 57th Street, 15th Floor, New York, NY               10022
---------------------------------------------              ------
(Address of principal executive offices)                 (Zip Code)

Registrant's telephone number, including area code        (212)-980-4600
                                                          --------------
-------------------------------------------------------------------------

      (Former name or former address, if changed since last report).
      -------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant, Zanett, Inc., a Delaware corporation (the
"Company"), hereby files this Current Report on Form 8-K describing its
acquisition of DeltaData, Inc., a California corporation doing business
as Delta Communications Group, Inc., ("Delta"). This Current Report on
Form 8-K contains forward looking statements that involve risks and
uncertainties relating to this acquisition and actual results and
developments may differ materially from those described in this Current
Report. For more information about the Company and risks relating to
investing in the Company, refer to the Company's most recent quarterly
report on Form 10-QSB and annual report on Form 10-KSB.

Item 2.     Acquisition or Disposition of Assets

Zanett, Inc. is building the IT Commonwealth (TM) - a business model that
seeks to combine private, independent technology companies into a public
enterprise, with the goal of making them collectively stronger, more
competitive and more profitable. The IT Commonwealth (TM) seeks to
preserve the management, culture, identity and operating style of its
members while achieving advantages of scale. It also attempts to bring
successful entrepreneurs and companies together into a collaborative
network, where each member continues to do what they do best, while
contributing to the financial and operating performance of the IT
Commonwealth (TM) as a whole.

On December 4, 2003 (the "Closing"), the Company acquired its fourth IT
Commonwealth (TM) member. Pursuant to the terms of the Agreement and Plan
of Merger (the "Merger Agreement") dated as of November 30, 2003, among
the Company, Zanett Merger Sub DCG, Inc., a wholly owned subsidiary of
the Company ("Merger Sub"), DeltaData, Inc., and Howard Norton, the
Company acquired Delta through a merger (the "Merger") of Delta with and
into Merger Sub. Upon consummation of the Merger, the separate corporate
existence of Delta ceased and the name of Merger Sub was changed to Delta
Communications Group, Inc. ("New Delta"), which is a Delaware
corporation.

Delta is a leading voice and data networking services integrator
providing communications security, design and implementation solutions to
Fortune 500 caliber companies and governmental agencies.  It maintains
strategic alliances with key manufacturers and communications vendors to
offer its clients with a comprehensive set of analysis, architecture,
project management, remote monitoring, network audit, componentry and
wide area networking solutions

The aggregate consideration to be paid by the Company to all Delta
shareholders (the "Delta Shareholders") will be comprised of the initial
cash consideration of $328,370, the initial stock issuance of 89,255
shares of the Company's common stock ("Common Stock"), the assumption of
$436,630 of debt and future contingent consideration to be paid upon
achievement of specified milestones described below.  The Common Stock
issued at closing was valued at $254,377 for accounting purposes based on
the average closing price for the three trading days prior to the
Closing.

The Delta Shareholders are eligible to receive contingent consideration
in each of the three successive annual periods commencing December 1,
2003 based upon New Delta attaining specified earnings targets in each
period.  The contingent consideration in each period consists of a
payment of $145,000 in cash and the issuance of a number of shares of
Common Stock determined by dividing $321,666 by the average closing price
of the Common Stock for the ten trading days immediately preceding the
issue date for each period.  For accounting purposes, the value of the
Common Stock issued for each annual performance period will be determined
based on the closing price of the Common Stock for the trading day
immediately preceding the resolution of the contingencies.

The annual contingent consideration will be paid to the Delta
Shareholders only if New Delta's earnings before interest, taxes,
depreciation and amortization ("EBITDA"), as defined in the Merger
Agreement, equal or exceed certain thresholds specified in the Merger
Agreement.  However, if the Delta Shareholders fail to meet the EBITDA
requirements in any of the annual performance periods, they will be
entitled to receive such amounts of annual contingent consideration not
previously paid after the end of the third performance period if New
Delta generates cumulative cash remittances for the three performance
periods taken as a whole in excess of the threshold specified in the
Merger Agreement.

The Delta Shareholders are also eligible to receive additional contingent
consideration at the end of the period commencing December 1, 2003 and
ending on November 30, 2006, based upon New Delta attaining specified
earnings targets for such period.  This additional contingent
consideration consists of the issuance of a number of shares of Common
Stock determined by dividing $400,000 by the average closing price of the
Common Stock for the ten trading days immediately preceding the issuance
of Common Stock for such period.  For accounting purposes, the value of
the Common Stock issued for additional contingent consideration will be
determined based on the closing price of the Common Stock for the trading
day immediately preceding the resolution of the contingencies.

The maximum aggregate consideration will be approximately $2.4 million,
of which approximately $1.0 million was paid at Closing as the initial
consideration and approximately $1.4 million will be paid as contingent
consideration. The Company estimates that transaction costs associated
with the acquisition of Delta will total approximately $200,000.

The Common Stock issued or issuable to the Delta Shareholders pursuant to
the Merger Agreement (the "Shares") is subject to certain transfer
restrictions until November 30, 2008 pursuant to lock-up agreements
executed by Delta Shareholders.  A portion of the Shares will be released
from such restrictions when the closing bid price per share of the Common
Stock equals or exceeds certain price targets.

The Company funded the cash portion of the purchase price paid at Closing
from existing cash on hand.

In connection with the Merger, New Delta entered into employment
agreements with the Chief Executive Officer and the Vice-President, Sales
of New Delta.  Pursuant to the employment agreements, each will be
employed by New Delta for a four-year period unless earlier terminated.
Should the employment of the Chief Executive Officer be terminated, he
will be entitled, under certain conditions, to receive specified
severance benefits. New Delta also entered into a Consulting Agreement
with two outside contractors of Delta who will continue as contractors of
New Delta after the Merger until December 5, 2008.

Copies of the Merger Agreement, the Employment Agreements, the Consulting
Agreements and the Lockup Agreements are attached as Exhibits 2.1, 10.1,
10.2 10.3, 10.4, 10.5, and 10.6.  The foregoing description is qualified
in its entirety by reference to the agreements filed herewith as
Exhibits.

Item 7.      Financial Statements, Pro Forma Financial Information and
Exhibits.

     (a)     Financial Statements of Businesses Acquired.

In accordance with Item 7(a)(4) for Form 8-K, the Registrant intends to
file such financial information as an amendment to this Form 8-K within
60 days of the date this 8-K is required to be filed.

     (b)     Pro Forma Financial Information

In accordance with Item 7(b)(2) for Form 8-K, the Registrant intends to
file such financial information as an amendment to this Form 8-K within
60 days of the date this 8-K is required to be filed.

     (c)     Exhibits

2.1*        Agreement and Plan of Merger
10.1        Employment Agreement with Howard Norton
10.2        Employment Agreement with Robert Anderson
10.3        Consulting Agreement with Ricky Monteilh
10.4        Consulting Agreement with James Bucklin
10.5        Lock-up Agreement with Howard Norton
10.6        Lock-up Agreement with Ruby Norton
99.1        Press release, dated December 8, 2003, announcing the
            acquisition of Delta Communications Group, Inc.

*  Exhibits and schedules omitted.  The Registrant will furnish a
supplementary copy of any omitted exhibit or schedule to the Commission
upon request.
SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.

                                          ZANETT, INC.

Date:   December 19, 2003           by:   /s/ Jack M. Rapport
                                    Name:  Jack M. Rapport
                                    Title: Chief Financial Officer

Index to Exhibits

2.1*        Agreement and Plan of Merger
10.1        Employment Agreement with Howard Norton
10.2        Employment Agreement with Robert Anderson
10.3        Consulting Agreement with Ricky Monteilh
10.4        Consulting Agreement with James Bucklin
10.5        Lock-up Agreement with Howard Norton
10.6        Lock-up Agreement with Ruby Norton
99.1        Press release, dated December 8, 2003, announcing the
            acquisition of Delta Communications Group, Inc.

*  Exhibits and schedules omitted.  The Registrant will furnish a
supplementary copy of any omitted exhibit or schedule to the Commission
upon request.