Tech Mahindra, an Indian software exporter and systems integrator, has acquired of 51% stake in Comviva Technologies Limited, a provider of VAS, mobile money and mobile payment solutions, for INR 26 billion ($48 million), from Bharti Group.
Tech Mahindra will make an upfront payment of INR 1.25 billion ($23.1m) towards the stake and the balance amount of INR 1.35 billion will be paid out over a period of five years based, on Comviva achieving mutually agreed performance targets. The current promoters will continue to hold a 20% stake on a fully diluted basis in Comviva after the deal is completed. Comviva will be rebranded as MahindraComviva.
This acquisition will enhance Tech Mahindra’s capabilities in the mobile VAS domain and will provide access to a “marquee” client base, enabling significant cross-selling opportunities, the company said in a statement.
Vineet Nayyar, executive vice chairman, Tech Mahindra, said: “This acquisition is a significant step forward, in our vision of being a complete and comprehensive partner to our clients.”
CP Gurnani, managing director, Tech Mahindra, added that deal would help the company expand into mobility products. “The world of mobility today encompasses wide range of solutions, where customers, be it enterprise or consumers, are driving their business and entertainment needs through mobility. This acquisition marks our strong intent and entry into the world of mobility products. We are adding significant capability in areas such as payments and VAS.”
Rakesh Bharti Mittal, chairman, Comviva said that the combined entity would bring end-to-end capabilities of products, system integration and services in the mobile VAS, money and payments space.
Comviva products include mobile money and payments, mobile data, integrated messaging, mobile lifestyle and customer life cycle management solutions. Its products are deployed with over 130 service providers and banks in more than 90 countries across Asia, Africa, Middle East, Latin America and Europe.
Tech Mahindra’s geographic reach and access to global telecos will enable Comviva to take integrated solutions and products to a larger base.