Tech Mahindra has acquired a controlling stake in Comviva Technologies Limited, a Bharti Group Company.
Tech Mahindra acquired 51 per cent stake in Comviva for Rs 2.6 billion. Comviva provides value added services (VAS), mobile money and mobile payment solutions. The deal is subject to regulatory approvals. Post acquisition, the company will be known as Mahindra Comviva.
As part of the deal, Tech Mahindra will make an upfront payment of Rs 1.25 billion and the Rs 1.35 billion will be paid over a period of five years, based on Comviva achieving mutually agreed performance targets. Post the closure of the deal, the current promoters will continue to hold a 20 per cent stake on a fully diluted basis in Comviva.
Commenting on this deal, CP Gurnani, managing director, Tech Mahindra, says, ?The world of mobility today encompasses wide range of solutions, where customers be it enterprise or consumers are driving their business and entertainment needs through mobility. This acquisition marks our strong intent and entry into the world of mobility products. We are adding significant capability in areas such as payments and VAS.?
Rakesh Bharti Mittal, chairman, Comviva, says, ?Comviva has established itself as a gobal leader in mobile solutions beyond VAS within a short span and has built a solid foundation for the next phase of its growth. We believe that Tech Mahindra, with its deep domain expertise in IT and telecom technologies, is an ideal partner to guide the future growth story of Comviva. We will continue to support Tech Mahindra in their endeavour to take Comviva to the next level and wish them success.?
