The board of TVS Electronics Ltd has approved the merger of the company with TVS eTechnology at a stock swap ratio of 1:1.
TVS eTechnology will be renamed, as TVS Electronics Limited and the new entity would be listed on all the stock exchanges, where TVS Electronics is listed, the company said in a statement.
TVS eTechnology is a national player in the customer support, technology support and maintenance services (TMS) areas.
TVS eTechnology offers field customer support to products of TVS-E. The company has a good all India geographical spread of field service with ability to offer services in the heart of India.
TVS eTechnology also acts as a preferred outsourced strategic partner to various brand owners and/or service providers.
TVS-E, which is in the fast growing business process outsourcing (BPO) space through its contract manufacturing and electronic manufacturing services, has also identified other synergistic BPO areas with high potential for growth.
One of the key BPO segments identified is TMS, with field service as well as remote technology maintenance and support. This segment is projected to grow at a rate of around 40 per cent, annually.
Gopal Srinivasan, director, TVS Electronics said,
