Tech Mahindra to acquire Canadian Consulting firm Objectwise
The Board of Directors of Tech Mahindra have approved the proposal to acquire 100 per cent shareholding of Objectwise Consulting Group Inc. The information technology (IT) firm will pay 2.75 million Canadian dollars (approximately Rs. 14.33 crore) for the company.
Objectwise Consulting is based in Ontario, Canada. The company is engaged in the development, implementation and support of PEGA software solutions in Canada. The revenue of Objectwise for the financial year ended September 30, 2018 stood at Canadian dollars (CAD) 13.6 million. It was incorporated in August 1996.
The transaction will be conducted through a new entity to be formed under Tech Mahindra's wholly-owned subsidiary, namely, Tech Mahindra (Americas) Inc, which will acquire 100 per cent equity shares of Objectwise Consulting Group Inc. The acquisition of shares is expected to close by 31st July 2019. The consideration would be in the form of cash. Cost of acquisition in equity value is CAD 2.75 million.
Reacting to this development, the stock of Tech Mahindra Limited is trading at Rs. 741 per share, showing an increase of 0.7 per cent to its previous close which is Rs. 736.75.