Tech Mahindra rose 3.66% to Rs 2,661.35 at 14:55 IST on BSE after the company announced that it has signed a definitive agreement to acquire SOFGEN Holdings, a niche consulting and services company.
The announcement was made during market hours today, 9 January 2015.
Meanwhile, the BSE Sensex was up 64.17 points, or 0.24%, to 27,338.88.
On BSE, so far 49.595 shares were traded in the counter, compared with an average volume of 43,511 shares in the past one quarter.
The stock hit a high of Rs 2,667.30 and a low of Rs 2,560 so far during the day. The stock hit a record high of Rs 2,741 on 21 November 2014. The stock hit a 52-week low of Rs 1,677.65 on 11 April 2014.
The stock had outperformed the market over the past one month till 8 January 2015, falling 1.55% compared with 3% fall in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 7.05% as against Sensex's 3.92% rise.
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The large-cap IT firm has an equity capital of Rs 235.72 crore. Face value per share is Rs 10.
Tech Mahindra announced that it has signed a definitive agreement to acquire SOFGEN Holdings (SOFGEN), a niche consulting and services company with worldwide presence specializing in private / wealth, commercial and retail banking solutions. The transaction is expected to close by March 2015, subject to regulatory approvals.
SOFGEN has 450+ employees with 20+ tier 1 client relationships. Delivering solutions in and around core banking the company has the 2nd largest pool of Avaloq consultants in the world and is Temenos' most prolific partner.
With this acquisition, Tech Mahindra will have the capability to offer a unique combination of Change the Bank and Run the Bank services to retail banking, private banking and wealth management customers globally.
This acquisition gives us an opportunity to enhance our expertise to implement modernized Core Banking & Transformation services capabilities. This milestone in the growth journey of Tech Mahindra will establish us as a significant player in the specialized & rapidly growing Private Banking and Wealth Management segment globally. said CP Gurnani, MD & CEO, Tech Mahindra.
In the past decade, SOFGEN has grown to be a leading player in the niche market segments such as Private, Wealth, Retail and Commercial Banking. Bringing SOFGEN into the Tech Mahindra fold will give us access to new geographies, and a different magnitude of customer relationship. said Alexander Dembitz, Chairman SOFGEN. The highly experienced consultant work-force, coupled with the size and scale of Tech Mahindra will help us deliver compelling value to our prestigious customers globally.
Tech Mahindra has best valued partnerships in core banking, cards and payments, risk management and compliance and currently serves 2 of the 3 top retail bank, cards / payment networks & insurance company in North America, Europe and Asia. Along with SOFGEN, the company will now be partnering 8 of the top 10 global wealth managers & private banking companies globally.
Tech Mahindra's consolidated net profit rose 14.09% to Rs 719.64 crore on 6.42% rise in total income to Rs 5545.46 crore in Q2 September 2014 over Q1 June 2014.
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