Tech Mahindra Limited, a leading provider of solutions and services to the telecommunications industry on Monday announced the acquisition of 51% stake on a fully diluted basis in Comviva Technologies Limited, a Bharti Group Company, and a global leader in providing mobile Value Added Services (VAS), Mobile Money and Mobile Payment solutions, for a value of INR 260cr. The deal will be subject to regulatory approvals.
 
Earlier in March Tech Mahindra had acquired 100% stake in Hutchison Global Services Private Limited for US $ 87.1 m, payable upfront.

The new brand identity will be Mahindra Comviva, reflecting the combined strength and spirit of both the entities. As part of this arrangement, Tech Mahindra will make an upfront payment of INR 125cr towards the stake acquired and the balance amount of INR 135cr will be paid out over a period of five years based, on Comviva achieving mutually agreed performance targets. The current promoters will continue to hold a 20% stake on a fully diluted basis in Comviva, post the deal closure.
 
Commenting on this move, Vineet Nayyar, Executive Vice Chairman, Tech Mahindra said “This acquisition is a significant step forward, in our vision of being a complete and comprehensive partner to our clients and like always, we are confident of making this a successful venture for our stakeholders. In addition to the market leading capabilities, this will also add to our relationship with large operator groups across the world.”
 
“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,” added CP Gurnani, Managing Director, Tech Mahindra. Rakesh Bharti Mittal, Chairman, Comviva said, “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 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.”
 
“The combined entity will bring end-to-end capabilities of products, system integration and services in the mobile VAS, money & payments space. Our enhanced customer experience management offeringswill deliver greater value to all our existing customers globally, and provide opportunities for accelerated growth,” added Manoranjan (Mao) Mohapatra, CEO, Comviva.