Tech Mahindra, country’s fifth largest IT service company, reportedly may acquire the IT services business of Chennai-based Polaris Financial Technology. The company is in an advanced stage of discussions with Polaris after L&T Infotech, another serious suitor, withdrew from the race to acquire the company on valuation issues.
Nevertheless, Tech Mahindra, which started the due-diligence a little while back, seems to be 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.
Polaris is a full-spectrum Financial Technology major, using technology as an enabler to drive unprecedented operational productivity in Retail, Corporate and Investment Banking. Polaris services over 200 banks across the world, including 9 of the top 10 banks, with a comprehensive suite of products, services and consulting offerings.