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Tech Mahindra gains on buying majority stake in Perigord Asset Holdings

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Capital Market
Last Updated : Mar 15 2021 | 11:50 AM IST

Tech Mahindra rose 1.90% to Rs 1,022.95 after the company announced that it acquired 70% stake in Perigord Asset Holdings to augment expertise in the global pharmaceutical, healthcare and lifesciences sectors.

Tech Mahindra will pay a total cash consideration of 21 million euros for 70% stake of Perigord Asset Holdings. The balance 30% stake will be acquired over the next four years at a valuation linked to financial performance of the company. The transaction is expected to close by 19 March 2021. The announcement was made during trading hours today, 15 March 2021.

Perigord Asset Holdings is a digital workflow and artwork, labeling and BPO services firm. The strategic partnership will strengthen Tech Mahindra's position as a leading digital transformation enabler in the artwork and packaging services space with an integrated platform and services portfolio.

Additionally, Tech Mahindra will leverage Perigord's expertise and offerings to extend capabilities towards delivering efficiency and automation levers, across sectors including consumer-packaged goods (CPG), medical devices and over the counter (OTC) products to enable growth and scalability in the future.

The acquisition is a part of Tech Mahindra's long-term growth plan to build presence across key markets in Ireland, Germany, USA, and India with enhanced global delivery.

The IT major's consolidated net profit jumped 21.35% to Rs 1,290.10 crore on 2.93% rise in net sales to Rs 9,647.10 crore in Q3 December 2020 over Q2 September 2020.

Tech Mahindra is engaged in the business of computer programming, consultancy and related services.

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First Published: Mar 15 2021 | 10:43 AM IST

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