Tech Mahindra acquires Comviva stake
BUSINESS| Sept. 19, 2012, 7:07 a.m.
Tech Mahindra Limited, India’s sixth largest software exporter, has acquired a 51% stake on a fully diluted basis in Comviva Technologies Limited, a Bharti Group Company, and a global leader in providing mobile Value Added Services (VAS), Mobile Money and Mobile Payment solutions, for a value of INR 260cr. The deal will be subject to regulatory approvals.
The new brand identity will be Mahindra Comviva,reflecting the combined strength and spirit of both the entities.
As part of this arrangement, Tech Mahindra will make an upfront payment of INR 125cr towards the stake acquired and the balance amount of INR 135cr 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% stake on a fully diluted basis in Comviva, post the deal closure.
Vineet Nayyar, Executive Vice Chairman, Tech Mahindra,said:“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.”
“The combined entity will bring end-to-end capabilities of products, system integration and services in the mobile VAS, money & payments space. Our enhanced customer experience management offerings will deliver greater value to all our existing customers globally, and provide opportunities for accelerated growth,”said Manoranjan (Mao) Mohapatra, CEO of Comviva.
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