Tech Mahindra, country’s fifth largest IT service company, may acquire the IT services business of Chennai-based Polaris Financial Technology. The company is in advanced stage of discussions with Polaris after L&T Infotech, another serious suitor withdrew from the race to acquire the company on valuation issues.
However, Tech Mahindra, which started the due-diligence a little while back, seems to fine with the valuation of over $ 400 million that Polaris is seeking for its IT service business. Polaris' services business had reported around $330 million (Rs 1,813 crore) in revenues in 2012-13.
Tech Mahindra is a leading provider of solutions and services to the telecommunications industry with a majority stake owned by Mahindra & Mahindra.