 "Tech Mahindra touches record high on acquisition of Geneva-based SOFGEN Holdings")
Tech Mahindra has moved higher by 2.5% to Rs 2,748 on NSE, in otherwise weak market, after the company said that it has signed a definitive agreement to acquire Geneva-based SOFGEN Holdings Limited, a niche consulting and services company specialising in private /wealth, commercial and retail banking solutions.
The transaction is expected to close by March 2015, subject to regulatory approvals, Tech Mahindra said in a press release. However, Tech Mahindra did not disclose the value of the SOFGEN deal.
The acquisition gives the company an opportunity to enhance its expertise to implement modernized core Banking & Transformation services capabilities, which constituted around 10% of sales in 2QFY2015.
According to analyst at Angel Broking, the acquisition is an all-cash deal and the value is pegged at sub-US $30 million, with sales of around US$40-45 million, making it an attractive buy for the company. The buyout would reflect fully in the FY2016 numbers.
The stock opened at Rs 2,697 and touched a record high of Rs 2,750 on NSE. Till 1258 hours, a combined 497,001 shares changed hands on the counter on NSE and BSE.
The transaction is expected to close by March 2015, subject to regulatory approvals, Tech Mahindra said in a press release. However, Tech Mahindra did not disclose the value of the SOFGEN deal.
The acquisition gives the company an opportunity to enhance its expertise to implement modernized core Banking & Transformation services capabilities, which constituted around 10% of sales in 2QFY2015.
According to analyst at Angel Broking, the acquisition is an all-cash deal and the value is pegged at sub-US $30 million, with sales of around US$40-45 million, making it an attractive buy for the company. The buyout would reflect fully in the FY2016 numbers.
The stock opened at Rs 2,697 and touched a record high of Rs 2,750 on NSE. Till 1258 hours, a combined 497,001 shares changed hands on the counter on NSE and BSE.