Tech Mahindra, the country’s fifth largest software exporter, said it has acquired the U.K.-based The BIO Agency (BIO), which specialises in digital transformation across sectors such as retail, financial and travel, in an all-cash deal for an enterprise value of up to 45 million pounds.
“The payment of 22 million pounds and the surplus cash (of 5 million pounds) will be made upfront and the balance as deferred payments based on company performance,” according to a BSE filing by Tech Mahindra. “The consideration is the enterprise value of 40 million pounds plus surplus cash not exceeding 5 million pounds as at the completion date.”
“Tech Mahindra will acquire 100 per cent of shares in BPO. The closing date of the transaction is expected to take place in the first week of July 2016,” according to the filing.
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The BIO Agency posted revenue of 12.5 million pounds during the fiscal year 2015-16 compared with 7.4 million pounds the previous year, according to the filing.
The move will help Tech Mahindra to strengthen its digital portfolio in providing better digital strategy, services and customer experience.
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“The acquisition will further strengthen and enable the company to engage with its clients at the start of the journey and more importantly, help design the customer experience for their businesses,” according to a statement from Tech Mahindra.
“The BIO Agency and Tech Mahindra will create one of the world’s leading innovation practices,” said C.P. Gurnani, MD and CEO, Tech Mahindra. “A combination of BIO’s visionary thinking and delivery with Tech Mahindra’s IT to Digital Transformation strategy will enable and create digital services, that get industries ready beyond just technology transformation, but a larger integrated customer experience.”
The acquisition will also help The BIO Agency to make sizable inroads into the telecommunications and enterprise clients of Tech Mahindra.
More clientsThe acquisition will open up more clients for BIO globally especially in Europe and the US, scaling their offerings and enabling new services and deeper Digital Change, according to the statement.
“We are looking forward to the next stage of BIO’s journey.
With a partner like Tech Mahindra, we plan to further scale our offering continuing to help clients change the way they engage with their customers.
"I am thrilled by the new possibilities of what our two companies will do together,” said Peter Veash, CEO, The BIO Agency.