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Tech Mahindra gains on acquiring Hong Kong-based payments solutions provider

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Tech Mahindra rose 0.90% to Rs 1073.75 after the company said that it has agreed to acquire 100% shareholding of Payments Technology Services for a cash consideration of $9 million.

Headquartered in Hong Kong, Payments Technology Services entity is a stepdown subsidiary of Fidelity Information Services (FIS). The company is a payments solutions provider with a banking and financial services (BFS) focus. Turnover of the company for the financial year ended 31 December 2019, was $5.4 million.

Tech Mahindra said that the acquired capabilities in the payments space will give the company access to IPs and licenses for two products viz. Open Payment Framework (OPF) and Multi-Bank System (MBS), which is consistent with its strategy of pivoting the business towards product and platform implementations and participating in the banking transformation programs.

"This acquisition will open up other opportunities for Tech Mahindra as a larger partner with FIS across a number of areas," the IT firm said in a BSE filing made after market hours yesterday.

The transaction is expected to close by 31 March 2021, it added.

Tech Mahindra is engaged in the business of computer programming, consultancy and related services. It's consolidated net profit jumped 11.24% to Rs 1,063.10 crore on 2.91% rise in revenues to Rs 9,371.80 crore in Q2 September 2020 over Q1 June 2020.

In the past one year, the stock has added 36.48% while the benchmark S&P BSE Sensex has added 18.80% during the same period.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, January 13 2021. 09:24 IST