IT services company Tech Mahindra has announced the acquisition of 51% stake in mobile software and value added services provider Comviva Technologies for Rs 260 crore. The new brand identity will be Mahindra Comviva, reflecting the combined strength and spirit of both the entities.
As part of this arrangement, Tech Mahindra will make an upfront payment of Rs 125 crore and the balance amount will be paid out over a period of five years based on Comviva achieving mutually agreed performance targets.
The current promoters will continue to hold a 20% stake on a fully diluted basis in Comviva, post the deal closure.
This acquisition will significantly enhance Tech Mahindra’s capabilities in the mobile VAS domain and will provide access to a marquee client base, enabling significant cross-selling opportunities.
“This is a significant step forward, in our vision of being a complete and comprehensive partner to our clients and like always, we are confident of making this a successful venture for our stakeholders. In addition to the market leading capabilities, this will also add to our relationship with large operator groups across the world,” Vineet Nayyar, Executive Vice Chairman, Tech Mahindra.
Comviva was founded in 1999 as Bharti Telesoft Limited which changed its name to Comviva Technologies in 2009. The company’s solutions are deployed with over 130 service providers and banks in over 90 countries across Asia, Africa, Middle East, Latin America and Europe, and powers services to more than a billion mobile subscribers.
Earlier this month, Tech Mahindra had acquired Hutchison Global Services for $87.1 million (about Rs 482 crore) as a part of its strategy to expand the IT and BPO businesses.
