IT services major Tech Mahindra on Friday said it has changed some of the terms of its stake-acquisition deals with Zen3 Infosolutions (America) Inc and Cerium Systems.
The development comes at a time when businesses globally across industries have been disrupted by the coronavirus outbreak.
Tech M, in a regulatory filing on Friday, said the Zen3 Infosolutions transaction is now expected to be closed by April 15, and USD 35 million will be paid at closing with a deferred payment of USD 4 million to be paid over two years.
The balance USD 25 million will be paid over three years linked to financial performance, the filing added.
The company, however, did not specify a reason for the modifications.
Tech Mahindra on February 24 had said it signed an agreement to acquire 100 per cent stake in US-based Zen3 Infosolutions for USD 64 million (Rs 460 crore) in an all-cash deal.
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At that time, it had said the transaction is expected to close by April 1. Also, USD 42 million was to be paid at closing and the remaining USD 22 million was to be paid over three years linked to financial performance.
In a separate filing, Tech Mahindra informed the stock exchange of modification in few terms of the acquisition of majority stake in Cerium Systems.
"...the transaction is expected to close by April 10, 2020...51 per cent of the shares will be acquired upfront for an enterprise value not exceeding Rs 245 crore. Balance 49 per cent will be acquired over the next three years at a valuation linked to the financial performance of the company," it added.
Tech Mahindra had in January announced it will acquire 70 per cent stake in Bengaluru-based Cerium Systems at an enterprise value of up to Rs 245 crore.
At that time, it had expected the transaction to close by April 1. While 70 per cent of the shares were to be acquired upfront at an enterprise value of Rs 245 crore, the remaining 30 per cent was to be acquired over the next two years.
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