Tech Mahindra acquires 51 % stake Comviva Technologies
17 Sep 2012
Tech Mahindra, the country's sixth largest software exporter, has acquired a 51 per cent stake in Bharti group company, Comviva Technologies for Rs260 crore. The deal is subject to regulatory approvals.
Comviva Technologies is a mobile value added services (VAS), mobile money and mobile payment solutions provider.
The new brand identity will be Mahindra Comviva, reflecting the combined strength and spirit of both the entities.
Tech Mahindra will make an upfront payment of Rs125 crore towards the stake acquired and the balance amount of Rs135 crore 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-per cent stake on a fully diluted basis in Comviva, after the deal closure.
''This acquisition 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,'' said Vineet Nayyar, executive vice chairman at Tech Mahindra.
