Mahindra Logistics (MLL) on Tuesday announced 100 per cent equity capital acquisition of Meru Cabs, a ride-sharing company, from its parent Mahindra & Mahindra (M&M). The all-cash deal size is Rs. 50.4 crore for acquisition of shares of Meru Travel Services Private Limited from M&M. The deal additionally envisages stake buyout of three subsidiaries of Meru Travel Service Private Limited as well. The total deal size (both combined) would be 100.9 crore. The deal is expected to be completed by December.
Meru Travel Solutions Private Limited (MTSPL) or Meru Cabs, founded in 2006, will be part of MLL along with three of its subsidiaries — Meru Mobility Tech Private Limited, V-Link Fleet Solutions Private Limited and V-Link Automotive Services Private Limited.
MLL, which is a third-party logistics company, is a 58.34 per cent subsidiary of M&M.
With this acquisition, MLL will be able to consolidate and expand its business in the enterprise mobility space. In the enterprise mobility service (ETMS) business, MLL operates under the ‘Alyte’ brand, it said in a release. “The combined capabilities of Meru and Alyte will enable us to better serve our B2C and enterprise customers with an expanded portfolio of services, delivering on the promise of safety, customer excellence and sustainability,” Rampraveen Swaminathan, MD and CEO at Mahindra Logistics said.
Today, Meru has significant presence in the airport ride-hailing segment and provides on-call and employee mobility services to corporates in India, said an MLL release.
Meru connects people across 24 cities with its large fleet of well-maintained cars integrated with the latest technologies. Meru outstation covers over 7,000 destinations across Indian 100 cities with rides anchored by chauffeurs, specially trained for long drives.
The cab firm has more than 200 EVs, the largest in India.
On Tuesday, shares of Mahindra Logistics ended at Rs 706.10, up 0.31 per cent from Monday’s close on the BSE, while shares of M&M closed at Rs 893, up 3.92 per cent from the previous close.