Tech Mahindra to acquire Tenzing Group, Momenton for Rs 293 crore

IT company Tech Mahindra on Friday said it will acquire complete stake in New Zealand-based Tenzing Group and Australian IT firm Momenton for a cumulative amount of around Rs 293 crore.

The company will acquire Auckland-headquartered consulting firm Tenzing Group for about Rs 218 crore and Melbourne-based cloud and engineering services firm Momenton for about Rs 75 crore.

"The acquisition of Momenton and Tenzing is in line with our strategy to strengthen our digital capabilities, and offer our clients end-to-end transformation services," Vivek Agarwal, head (corporate development) and global head (healthcare and financial services) at Tech Mahindra, told PTI.

He added that the entire team of both the companies will join Tech Mahindra.

Tenzing Group will bring in around 145 employees to Tech Mahindra and Momenton Pty Ltd, 55 employees.

The acquisition of Tenzing Group is expected to close at the end of November, and the process for Momenton is expected to close by March 31.

"Both Momenton and Tenzing Group have been operating in the Australia and New Zealand market with focus on financial services. We are looking to increase our capabilities there. We do have a sizable presence in the Australia and New Zealand markets," Agarwal said.

He also said these acquisitions will help the company add more visibility in the verticals they operate in.