Tech Mahindra pays Rs 8 cr for Servista stake

Tech Mahindra, Mumbai-headquartered IT services provider in the telecom space, has acquired a minority stake of 17 per cent in a UK-based system integration firm, Servista, for around Rs 8 crore, according to sources close to the development.

As per the agreement, Tech Mahindra will have certain warrants/ options to purchase additional shares in the company to take its holdings to over 30 per cent upon Servista achieving certain business target over the next four years, Atul Kanswal, executive director of the company, said.

Kanswal said Servista will be able to deliver better results in selling offshore services now with Tech Mahindra as its delivery partner. Tech Mahindra will also be able to help it ensure better client loyalty and repeat business. Servista caters to utility sector with focus on telecom. Global private equity firm such as HarbourVest and venture firm Arts Alliance have also invested in Servista.