Tech Mahindra acquires 100% stake in Allyis India and Green Investments

The company, in a BSE filing, said that the $125 mn acquisition will bolster Tech Mahindra's capabilities in digital experience solutions.

IT services major Tech Mahindra today announced the acquisition of 100 per cent stake of Allyis India and Green Investments for $125 million in an all cash deal. So far the company has invested close to $500 million in seven acquisitions in FY22.

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 $39.6 million.

The acquisition of Target, said the company in a regulatory filing will bolster its capabilities in digital experience solutions: learning & development, marketing, instructional design; engineering: cloud & automation, BI & analytics, technical support services.

Target offers technology consulting and managed services, while Allyis India was incorporated in 2018 Green Investments LLC was incorporated in 2013.

This acquisition will take Tech Mahindra’s tally of acquisitions for the fiscal year 2021-22 to seven, over an investment of $500 million. The company has said that it will look for M&A to bolster its offering in the digital space. C P Gurnani, CEO and MD, Tech Mahindra in an interaction with Business Standard stated: “At this stage, it (acquisition) will be more about product engineering, cloud, AI, and customer experience management. It will be for both Indian and global companies.”

Tech Mahindra has been making small tuck-in acquisitions in the recent past. Earlier this month the company announced the acquisition of Florida-based Activus Connect in an all cash deal worth $62 million.

During the Q4 FY21 results, Vivek Agarwal, president- BFSI, HLS and corporate development had  said that the strategy is to find pockets that accelerate the company’s growth and add relevance to clients. “We evaluate deals on the opportunities we get. A lot of deal wins are in digital transformation — as you get large deals-- while there is an outsourcing element also. Largely, the trigger point is transformation and shift from legacy to digital cloud, among others. We will position ourselves which allo­ws us to go after such deals,” he had said.

Table of acquisitions in FY22

Target company	Value	Focus area
DigitalOnUs	$120mn	Cloud native + hybrid cloud infra
Eventus Solutions Group	$44mn	Consulting capabilities
Brainscale Inc.	$28.8mn	Cloud related tech
Beris Consulting Gmbh	Rs 60cr	Consulting
Infostar LLC	$105mn	Digital capabilities
London based We Make Websites	$13mn	Digital capabilities
Activus Connect	$62mn	Digital transformation + consulting