Tech Mahindra rose 0.51% to Rs 540 at 9:30 IST on BSE after the company announced the acquisition of 100% stake in The Bio Agency Limited, a UK based entity.
The announcement was made before market hours today, 22 June 2016.Meanwhile, the S&P BSE Sensex was down 18.30 points or 0.07% at 26,798.27.
On BSE, so far 7,549 shares were traded in the counter as against average daily volume of 1.99 lakh shares in the past one quarter. The stock hit a high of Rs 545 and a low of Rs 538.55 so far during the day.
The large-cap company has equity capital of Rs 485.40 crore. Face value per share is Rs 5.
Tech Mahindra announced that the Investment Committee of Board of Directors of the company on 21 June 2016 approved the proposal to acquire 100% stake in The Bio Agency Limited, a UK based entity. The company will be acquired for the enterprise value of GBP 40 million plus surplus cash not exceeding GBP 5 million as at the completion date. The payment of GBP 22 million and the surplus cash will be made upfront and the balance as deferred payments based on company performance. The closing of the transaction is expected to take place in the first week of July 2016. A part of the cash consideration is in deferred payments from 2017 to 2019 based on the company performance during the period FY 2017 to FY 2019. The management of Bio will be also awarded consideration based on revenue they bring to Tech Mahindra over next 3 years.
BIO, UK specializes in digital transformation and innovation, helping organizations change the way they engage with customers. It has revenues of GBP 12.5 million for the year ended 30 April 2016. The acquisition brings forth the synergy that will open up more clients for BIO globally, especially in US and Europe, scaling their offering geographically and enabling new services and deeper digital change.
Tech Mahindra's consolidated net profit rose 18.15% to Rs 897 crore on 2.72% rise in revenue from services to Rs 6883.70 crore in Q4 March 2016 over Q3 December 2015.
Tech Mahindra is a specialist in digital transformation, consulting and business re-engineering solutions.
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