 "Tech Mahindra to acquire 100% stake in Allyis India, Green Investments")
Tech Mahindra on Friday said it has approved a proposal for the acquisition of a 100 per cent stake in Allyis India and Green Investments, for a total consideration of up to USD 125 million.
The acquisition is expected to bolster Tech Mahindra's capabilities in digital experience solutions - learning and development, marketing, instructional design; and engineering - cloud and automation, analytics, and technical support services.
Tech Mahindra would pay total consideration of up to USD 125 million, including employment-related and performance-related earnouts, the company said in a regulatory filing.
"...the company approved the proposal to acquire 100 per cent equity shares in Allyis India Private Limited and the company's wholly-owned subsidiary viz., Tech Mahindra (Americas) Inc. approved the proposal to acquire 100 per cent equity shares in Green Investments LLC, holding company for Allyis Group," Tech Mahindra said in a BSE filing.
The target entity is headquartered in Seattle, USA and has more than 660 employees. "For the financial year ending December 31, 2020, the target had revenue of USD 39.6 million," it said.
Outlining the details of the target, Tech Mahindra said it offers technology consulting and managed services that help organisations reduce costs and improve performance.
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While Allyis India Pvt Ltd was incorporated in 2018, Green Investments LLC was incorporated in 2013. The turnover of the two entities stood at USD 39.6 million in the calendar year 2020.
"The CY21 (the calendar year 2021) turnover, for the first 11 months starting 1 January 2021 to 30 November 2021 is at USD 45.7 million," it added.