Tech Mahindra is going to acquire 70 per cent stake in Bengaluru-based Cerium Systems at an enterprise value of up to Rs 245 crore. The acquisition will boost Tech Mahindra's Engineering Services practice in VLSI (Very Large Scale Integration) and Embedded Software.
70 per cent of the shares will be acquired upfront for an enterprise value not exceeding Rs 245 crore and the remaining 30 per cent will be acquired over the next two years at a valuation linked to the financial performance of the company. The cash transaction is expected to close by April 1, 2020.
Tech Mahindra is a leading provider of solutions and services to the telecommunications industry with a majority stake owned by Mahindra & Mahindra. The company, since 2002 has operations in China with offices in Beijing, Shanghai, Nanjing and Guangzhou.
