Tech Mahindra, India’s sixth largest software exporter has acquired 51% stake on a fully diluted basis in Comviva Technologies, 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 Rs 260 crore. 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 Rs 125 crore towards the stake acquired and the balance amount of Rs 135 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 20% stake on fully diluted basis in Comviva, post the deal closure.
This acquisition will significantly enhance Tech Mahindra’s capabilities in the mobile VAS domain and will provide access to a marquee client base, enabling significant cross-selling opportunities.
Tech Mahindra is a leading provider of solutions and services to the telecommunications industry with a majority stake owned by Mahindra & Mahindra.
