Tech Mahindra stock to watch: acquires BIO Agency

Tech Mahindra the part of Mahindra and group will be the stock in news of the June 22 trade. The company at 8.15 am, on June 22 has intimidated the stock exchanges that it has acquired UK based BIO Agency Ltd.

BIO Agency Ltd., is a UK based company which specialises in digital transformation and innovation, helping organisations change the way they engage with their customer. The company for the financial year 2016 has reported a revenue of GBP 12.5 million.

Tech Mahindra will acquire 100 per cent shares of the target company and the said acquisition will be for the cash consideration. The consideration is the enterprise value of GBP  40 million plus surplus cash not exceeding GBP 5 million as at completion date.

The payment of GBP 22 million and the surplus cash will be made upfront and the balance, as deferred payments based on the company’s performance. The transaction is expected to take place in the first week of July 2016.

Tech Mahindra Limited is an Indian multinational provider of information technology (IT), networking technology solutions and Business Process Outsourcing (BPO) to the telecommunications industry. It is a specialist in digital transformation, consulting and business re-engineering solutions. Anand Mahindra is the founder of Tech Mahindra, which is headquartered at Pune, India. It has expanded its IT portfolio by acquiring Satyam Computer Services.

The shares on June 22, at 9.21 am have opened positive and are currently trading at Rs 539.95, up by 0.50 per cent.