Tech Mahindra Acquires European IT Firm for Rs 2,628 Crore: Details

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Tech Mahindra Acquires European IT Firm for Rs 2,628 Crore: Details

By Malvika Gurung

Investing.com -- The IT services provider Tech Mahindra (NS: TEML ) announced the acquisition of three IT-based platforms/companies on Monday, totalling approximately to Rs 2,800 crore.

The Pune-based IT major acquired a 100% stake in the Europe-based IT and services company Com tec Co IT (CTC), and 25% ownership in two IT platforms, SWFT and Surance, for a total of EUR 330 million.

Tech Mahindra completely acquired CTC for 310 million euros, which is around Rs 2,628 crore, including earnouts and synergy linked payouts, stated a PTI report, and is known to be investing separate 20 million euros for the acquisition of a 25% stake in the other two IT platforms.

As per the IT company, acquiring these entities will bolster its insurance technology and digital engineering businesses, while the acquisition of CTC is the company’s second-largest acquisition since April 2010.

Tech Mahindra, in a regulatory filing on Monday noted that it approved the proposal of acquiring 100% shares of CTC and 25% in SWFT Technologies and Surance, through its subsidiary Tech Mahindra London.

Shares of the company ended 0.88% lower at Rs 1,722.4 on Monday.

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