M&M acquires stake in Canadian IT firm Resson Aerospace corp
02 May 2018
Mahindra and Mahindra (M&M) has entered into a share subscription agreement to acquire up to 10-per cent stake in Canadian IT firm Resson Aerospace Corp for up to C$6.63 million (Rs34.5 crore) to be paid in cash.
Resson, which focuses on imagery analysis for monitoring health of crops, had a turnover of C$1.43 million in calendar year 2017, M&M said in a regulatory filing.
“The acquisition of shares in Resson is expected to support company’s businesses by developing technology solutions for the company’s farm division,” it said, adding M&M will subscribe to upto 8 lakh Class C preferred shares of Resson.
This would result in the company holding up to 10-per cent of the share capital of Resson on a fully diluted basis, it added.
Resson, set up in May 2013, is a Canada-based company focussed on providing technology solutions for agriculture. It has developed a system, which captures and interprets images to give farmers information about the state of their fields and crops.
It operates primarily in Canada and the US.
The transaction is expected to be completed by May 10, 2018, with the consideration would be paid in cash.