Tech Mahindra to acquire US-based IT consulting service provider for $125 mn

Tech Mahindra said that it has approved the proposal to acquire 100% equity shares in Allyis India.

The company's wholly owned subsidiary viz., Tech Mahindra (Americas) Inc. has approved the proposal to acquire 100% equity shares in Green Investments LLC, holding company for Allyis Group.

The acquired companies offers technology consulting and managed services that help organizations reduce costs, improve performance. Their CY21 turnover, for the first 11 months starting 1 Jan 2021 to 30 Nov 2021 is at $45.7 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 $125 million including employment related and performance related earnouts.

Tech Mahindra is focused on leveraging next-generation technologies including 5G, Blockchain, Cybersecurity, Artificial Intelligence, and more, to enable end-to-end digital transformation for global customers.

The IT company posted 25.8% increase in consolidated net profit to Rs 1338.70 crore on 16.1% rise in net sales to Rs 10,881.30 crore in Q2 FY22 over Q2 FY21.

The scrip shed 0.73% to currently trade at Rs 1787.35 on the BSE.

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