New Delhi: Software services provider Tech Mahindra on Monday announced acquisition of 51 percent stake in mobile value added services providers Comviva, in which Bharti Group has a major stake, for Rs 260 crore.
    
Post the acquisition, which is subject to regulatory approval, the new entity will be called Mahindra Comviva.
     
Tech Mahindra said Bharti Group is a majority shareholder in Gurgaon-based Comviva but declined to give details of its current and post-acquisition holding.
    
The current promoters will continue to hold 20 percent stake on fully-diluted basis post the deal closure, the company said.
     
"This acquisition is a significant step forward in our vision of being a complete and comprehensive partner to our clients and like always we are confident of making this a successful venture for our stakeholders," Tech Mahindra Executive Vice-Chairman Vineet Nayyar said.
    
As a part of the deal, Tech Mahindra will make an upfront payment of Rs 125 crore, while the balance Rs 135 crore will be paid out over a period of five years based on Gurgaon-based Comviva achieving mutually agreed performance target.
     
This is the second acquisition by Tech Mahindra this month. Recently, it acquired Hutchison Global Services (HGS), call centre arm of Hutch, for USD 87.1 million (Rs 484.03 crore).
     
According to sources, the three private equity investors -- WestBridge Capital, Sequoia Capital India, Cisco Systems -- are selling their entire stake to Tech Mahindra, while Bharti Group is selling a part of its holding in Comviva.
     
Shares of Tech Mahindra on Monday closed at Rs 903.45, down 0.69 percent from their previous close.

(Agencies)

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