Tech Mahindra Limited approves acquisition of Allyis Group for $125 mn

Tech Mahindra Limited has approved the proposal to acquire 100% equity shares in Allyis India Private Limited and the Company's wholly owned subsidiary viz., Tech Mahindra (Americas) Inc. approved the proposal to acquire 100% equity shares in Green Investments LLC, holding company for Allyis Group (together called as Target).

The target entity is Allyis India Pvt Ltd and Green Investments LLC, holding company for Allyis Group (together called as Target). The Target is headquartered in Seattle, USA and has more than 660 employees. For the financial year ending 31st December, 2020, the target had revenue of USD 39.6 million.

The acquisition will bolster Tech Mahindra's capabilities in: Digital Experience Solutions: Learning & Development, Marketing, Instructional Design; Engineering: Cloud & Automation, BI & Analytics, Technical support services.

Tech Mahindra will pay total consideration of up to USD 125 million including employment related and performance related earnouts.

The target company offers technology consulting and managed services that help organizations reduce costs, improve performance, and meet their unique objectives. While Allyis India Pvt Ltd was incorporated in 2018 Green Investments LLC was incorporated in 2013. Last 3 year's total turnover for the two entities is as follows:

CY20: USD 39.6 million
CY19: USD 34 million
CY18: USD 31 million

The CY21 turnover, for the first 11 months starting 1 Jan 2021 to 30 Nov 2021 is at USD 45.7 million.

Shares of Tech Mahindra Limited was last trading in BSE at Rs. 1800.55 as compared to the previous close of Rs. 1786.65. The total number of shares traded during the day was 118191 in over 7125 trades.

The stock hit an intraday high of Rs. 1837.75 and intraday low of 1786.25. The net turnover during the day was Rs. 214380215.00.

Source : Equity Bulls

Keywords

TechMahindra INE669C01036 TECHM Acquisition AllyisGroup