Tech Mahindra Acquires 100% Stake In US Based Allyis India, Green Investments For $125 Mn
The company's stock opened the market at Rs 1800 today, and has surged more than 80% year-to-date.
Tech Mahindra on Friday said the company gave its nod to the proposal of acquiring a 100 percent stake in the U.S based IT firms- Allyis India and Green Investments through their holding company Allyis Group, for a considerable amount aggregating up to $125 million.
With this deal, Tech Mahindra can strengthen its capacity in providing digital experience solutions - learning and development, marketing, instructional design; and engineering - cloud and automation, analytics, and technical support services.
The consideration amount of $125 million will include employment-related and performance-related earnouts, the company said in a regulatory filing.
"...the company approved the proposal to acquire 100 per cent equity shares in Allyis India Private Limited and the company's wholly-owned subsidiary vizTech Mahindra (Americas) Inc. approved the proposal to acquire 100 per cent equity shares in Green Investments LLC, holding company for Allyis Group," Tech Mahindra said in a BSE filing.
The target firms are headquartered in Seattle, USA, and have a headcount of more than 66o employees. "For the financial year ending December 31, 2020, the target had revenue of $39.6 million," it said.
In CY 2019, the two entities had a total turnover of $ 34 million, while in the preceding year, it had total revenue of $ 31 million.
Elaborating on the nature of business of the target entity, Tech Mahindra said it offers technology consulting and managed services that help organizations enhance their performance and be cost-effective.
Allyis India Pvt Ltd was incorporated in 2018, and Green Investments LLC was incorporated in 2013.
"The CY21 (the calendar year 2021) turnover, for the first 11 months starting 1 January 2021 to 30 November 2021 is at $45.7 million," it added.
The announcement comes a day after Tech Mahindra stock rallied to a fresh 52-week high of Rs 1,825.65 apiece on BSE, breaking the previous 52-week high level of Rs 1,822, hit on Tuesday this week.
The company's stock opened today's market at Rs. 1800 apiece, and has surged more than 80% year-to-date.