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Updated: September 17, 2012 22:23 IST

Tech Mahindra buys 51 % stake in Comviva

PTI
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Mr.Vineet Nayyar, Vice Chairman & MD, Tech Mahindra and Chairman, Mahindra Satyam.
The Hindu Mr.Vineet Nayyar, Vice Chairman & MD, Tech Mahindra and Chairman, Mahindra Satyam.

Software services provider Tech Mahindra, on Monday, announced the acquisition of 51 per cent stake in mobile value added services providers Comviva, in which the Bharti Group had a major stake, for Rs.260 crore.

Post-acquisition, subject to regulatory approval, the new entity would be called Mahindra Comviva. Tech Mahindra said the Bharti Group was a majority shareholder in Gurgaon-based Comviva.

The current promoters would continue to hold 20 per cent 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 we are confident of making this a successful venture for our stakeholders,” Tech Mahindra Executive Vice Chairman Vineet Nayyar told reporters here.

As a part of the deal, Tech Mahindra will make an upfront payment of Rs.125 crore, while the balance will be paid out over five years.

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