US-based telecom service provider, AT&T International picked 8.07% stake in Indian software firm focused on the telecom industry, Tech Mahindra.

AT&T acquired about 9.87 million shares of Tech Mahindra in an off-market transaction at a price of $ 3.5 or Rs 162 per share.

According to an agreement signed between the two firms in 2005, AT&T had an option to acquire stake in Tech Mahindra subject to meeting certain revenue targets. AT&T has acquired the stake through Mahindra BT Mauritius.

AT&T contributed the second highest business to Tech Mahindra accounting close to 15% of the latter’s total revenues.