Tech Mahindra Explained

Type:Public
Area Served:Worldwide
Industry:Information technology
Consulting
Outsourcing
Revenue: (2024)
Operating Income: (2024)
Net Income: (2024)
Assets Year:2024
Equity Year:2024
Num Employees:138,510 (March 2024)[1]
Parent:Mahindra Group
Founder:Anand Mahindra
Location:Pune, Maharashtra, India
Footnotes:Financials .[2] [3]

Tech Mahindra is an Indian multinational information technology services and consulting company. It was formed in 1986 as a joint venture between BT Group and Mahindra & Mahindra. Part of the Mahindra Group, the company is headquartered in Pune and has its registered office in Mumbai.[4]

History

In 1986, Mahindra & Mahindra started a 60:40 joint venture technology services outsourcing firm with British Telecom named Mahindra British Telecom (MBT). In 2000, British Telecom committed business of at least £105 million over three years; as a consideration, British Telecom's stake in MBT increased to 43%.[5] MBT primarily served the telecommunications industry in its early years, with British Telecom as its largest client.[6]

In 2006, MBT was renamed as Tech Mahindra,[7] and it became a public company via an initial public offering.[8] In December 2010, British Telecom sold 5.5% of its stake in Tech Mahindra to Mahindra & Mahindra for 451 crore.[9] In August 2012, British Telecom sold 14.1% of its stake to institutional investors for about 1,395 crore. In December 2012, British Telecom sold its remaining 9.1% stake to institutional investors for 1,011.4 crore. This sale marked the exit of British Telecom from Tech Mahindra.[10]

Acquisition and merger of Satyam

After the Satyam scandal of 2008–09, Tech Mahindra emerged as the top bidder for a 31% stake in Satyam Computer Services, beating a bid from Larsen & Toubro.[11] After evaluating the bids, the government-appointed board of Satyam Computer announced on April 13, 2009 that it had selected Venturbay Consultants Private Limited, a subsidiary of Tech Mahindra, as the highest bidder to acquire a controlling stake in the company.[12] After the completion of the acquisition, Satyam Computer Services was renamed Mahindra Satyam in June 2009.[13]

Tech Mahindra announced its merger with Mahindra Satyam on 21 March 2012, after getting approval of the two company boards.[14] [15] The new organization would be led by Anand Mahindra as Chairman, Vineet Nayyar as Vice Chairman, and C. P. Gurnani as the CEO and Managing Director.[16] [17] [18] On 25 June 2013, Tech Mahindra announced the completion of its merger with Mahindra Satyam to create India's fifth largest software services company with a turnover of $2.7 billion.[19] [20] Mahindra Satyam was suspended from trading with effect from 4 July 2013, following the merger.[21] After the completion of share swap,[22] the stock exchanges approved the trading of new shares from 12 July 2013.[23] [24]

Later years

In 2014, Tech Mahindra acquired Lightbridge Communications Corporation (LCC), a telecom services company. In 2015, Tech Mahindra acquired SOFGEN Holdings, a Swiss IT firm in the financial services industry.[25] Tech Mahindra purchased a controlling stake in Pininfarina S.p.A., an Italian automotive and industrial design company.[26] Tech Mahindra announced the launch of its Automation Framework AQT (Automation, Quality, Time).[27] By March 2016, Tech Mahindra's post-tax earnings had surpassed that of M&M.<ref>Web site: TECHM Shareholding Pattern - Tech Mahindra Ltd Stock. 2020-06-28. fintel.io. en.

In September 2019, Tech Mahindra acquired BORN Group, a New York City–based digital content and production agency, for $95 million in an all-cash deal.[28] The company was ranked #5 in India's IT firms and overall No. 47 on Fortune India 500 list for 2019.[29]

In March 2021, Tech Mahindra partnered with US-based business intelligence analytics company ThoughtSpot.[30]

In October 2022 Tech Mahindra acquired 26% equity shares in Upendra Singh Multi Transmission Private Limited, allowing the company to procure 1.5 MW of solar energy for its facilities in Noida.[31]

In 2023, Tech Mahindra and FIDE organized the Global Chess League, an over-the-board rapid chess league.[32] [33]

Acquisitions

! Year !! Company !! Country !! Industry !! Acquisition cost
2005 Axes Technologies[34] United States Telecom engineering $54 million
2007 iPolicy Networks[35] United States Network security Undisclosed
2009-13 Satyam Computer Services[36] India IT services $1.75 billion
2012 Hutchinson Global Services[37] United States Business process outsourcing $87 million
2012 Comviva[38] India Telecom VAS $48 million
2014 Lightbridge Communications Corporation (LCC)[39] United States Telecom network services $240 million
2015 SOFGEN Holdings[40] Switzerland Banking technology consulting Undisclosed
2015 Pininfarina[41] Italy Automotive design engineering €168 million
2016 Target Group[42] United Kingdom Business process outsourcing £120 million
2016 The Bio Agency United Kingdom Digital consulting £45 million
2017 HCI Group (CJS Solutions Group)[43] United States Healthcare technology $89.5 million
2019 DynaCommerce[44] Netherlands Telecom software services €15 million
2019 Mad*Pow[45] United States Design consultancy $17 million
2019 BORN Group United States Content agency $90 million
2020 Zen3 Infosolutions[46] United States Enterprise software $64 million
2021 DigitalOnUs[47] United States Cloud and DevOps services $120 million
2021 Eventus Solutions Group[48] United States CX consulting $44 million
2021 Brainscale[49] United States Cloud consulting $28.8 million
2021 Lodestone (Infostar)[50] United States Product engineering $105 million
2021 Activus Connect[51] United States CX technology $62 million
2021 Allyis Group[52] United States IT consulting $125 million
2022 Com Tec Co (CTC)[53] Cyprus IT consulting €310 million
2022 Thirdware[54] India Enterprise software $42 million

Locations

Tech Mahindra has offices in around 50 countries.[55]

See also

Notes and References

  1. Web site: Tech Mahindra ends Q3 with 4,354 fewer employees. 24 January 2024. Moneycontrol.
  2. News: Integrated Annual Report 2022-23 . 25 April 2024 . Tech Mahindra.
  3. Web site: TechMahindra Profit and loss statement.
  4. Web site: Tech Mahindra . January 1, 2018 . techmahindra.com . TechMahindra.
  5. News: British Telecom commits Rs 7250/- million business to MBT over three years . 9 September 2024 . Rediff.
  6. News: Tech Mahindra bags $700 mn deal from British Telecom . 9 September 2024 . The Economic Times . 16 May 2008.
  7. News: MBT to be renamed Tech Mahindra . 5 September 2024 . Business Standard . 14 February 2006.
  8. News: Tech Mahindra sets IPO price band at Rs 315-Rs 365 . 5 September 2024 . The Economic Times . 27 July 2006.
  9. Web site: BT Group to exit from Tech Mahindra, directors resign. Economic Times. 4 July 2015. 24 December 2011. https://web.archive.org/web/20150705160534/http://articles.economictimes.indiatimes.com/2011-12-24/news/30554758_1_bt-group-tech-mahindra-techm. 5 July 2015. dead. dmy-all.
  10. Web site: BT exits Tech Mahindra. The Hindu. 4 July 2015. 12 December 2012.
  11. Web site: Tech Mahindra wins Satyam Computer bid. https://web.archive.org/web/20090416110946/http://ibnlive.in.com/news/tech-mahindra-wins-satyam-bid--full-coverage/90124-7.html. dead. 2009-04-16. IBNLive.
  12. News: Tech Mahindra wins Satyam bid. India Today. 12 April 2009.
  13. News: Satyam renamed as Mahindra Satyam . 5 September 2024 . Business Standard . 22 June 2009.
  14. Web site: Rising wages can harm Indian IT companies: Vineet Nayyar, Vice-Chairman, Tech Mahindra. https://web.archive.org/web/20110805231135/http://articles.economictimes.indiatimes.com/2011-06-21/news/29683399_1_tech-mahindra-mahindra-satyam-mahindra-satyam-tech-mahindra-sixth-largest-software-exporter. dead. 5 August 2011. timesofindia-economictimes.
  15. Web site: Tech Mahindra, Satyam get nod to merge.
  16. Web site: M-Satyam, Tech Mahindra hope to merge in four weeks. 11 June 2013 .
  17. Web site: Will complete Tech Mah, Satyam merger in 8 weeks: Nayyar. 11 June 2013.
  18. News: MSat-Tech Mahindra merger gets court nod . Chennai, India . The Hindu . June 11, 2013.
  19. Web site: Mahindra Satyam merges with Tech Mahindra; becomes 5th biggest IT firm . 2013-06-25 . live . https://web.archive.org/web/20150619224313/http://zeenews.india.com/business/news/companies/mahindra-satyam-merges-with-tech-mahindra_78656.html . 19 June 2015 . dmy .
  20. Web site: Tech Mahindra, Satyam Computer complete merger. 25 June 2013.
  21. Web site: Trading in Mahindra Satyam to be suspended from July 4. 29 June 2013.
  22. News: 1:8.5 swap for Tech Mahindra, Mahindra Satyam merger . Chennai, India . The Hindu . June 25, 2013.
  23. Web site: Tech Mahindra completes share swap, issued capital goes up. 12 July 2013.
  24. News: Tech Mahindra completes share swap — The Times of India. The Times Of India .
  25. Web site: ?Tech Mahindra to acquire Swiss firm SOFGEN Holdings. timesofindia-economictimes. 15 January 2015. https://web.archive.org/web/20150114032047/http://articles.economictimes.indiatimes.com/2015-01-09/news/57883595_1_tech-mahindra-lightbridge-communications-gurnani. 14 January 2015. dead. dmy-all.
  26. Web site: Tech Mahindra set to acquire Italian car design company Pininfarina. timesofindia-economictimes. 22 December 2015. https://web.archive.org/web/20151223040737/http://articles.economictimes.indiatimes.com/2015-12-14/news/69033382_1_tech-mahindra-debt-restructuring-design. 23 December 2015. dead. dmy-all.
  27. Web site: Tech Mahindra rolls out automation tool to boost productivity. Bibhu Ranjan Mishra. 23 December 2015.
  28. Web site: Tech Mahindra acquires New York-based BORN Group for $95 million. Sriram. M.. 2019-11-05. Mint. en. 2019-11-26.
  29. Web site: Tech Mahindra - Fortune 500 List 2019. Fortune.
  30. News: Tech Mahindra partners with ThoughtSpot for AI-driven analytics. The Economic Times. 2021-03-09.
  31. Web site: Tech Mahindra to acquire 26% in Upendra Singh Multi Transmission . 2022-10-28 . www.indiainfoline.com . en.
  32. Web site: FIDE and Tech Mahindra Announce Dates for First & Biggest Global Chess League . 2023-08-06 . www.fide.com . en.
  33. News: Tech Mahindra, FIDE join hands for franchisee-based chess competition . .
  34. News: Mahindra British buys Axes Tech for $54m . 9 September 2024 . The Economic Times . 17 November 2005.
  35. News: Tech Mahindra buys US co iPolicy Inc . 9 September 2024 . Rediff.
  36. News: Tech Mahindra completes Satyam merger . 9 September 2024 . VCCircle.
  37. News: Shivapriya . N. . Tech Mahindra announces acquisition Hutchison Global Services for $ 87 million . 5 September 2024 . The Economic Times . 4 September 2012.
  38. News: Tech Mahindra buys 51% of Bharti Group's mobile VAS firm Comviva for $48M . 5 September 2024 . VCCircle.
  39. News: Tech Mahindra acquires 100% stake in Lightbridge Communications . 5 September 2024 . Mint.
  40. News: Tech Mahindra acquires SOFGEN to boost banking business . 5 September 2024 . Mint.
  41. News: Merchant . Akbar . Mahindra acquires Pininfarina design house . 5 September 2024 . Autocar India . 14 December 2015 . en.
  42. News: Tech Mahindra to acquire UK's Target Group for up to $175 mn . 5 September 2024 . VCCircle.
  43. News: Usmani . Azman . Tech Mahindra To Acquire U.S.-Based Healthcare IT Consulting Firm, HCI Group . 5 September 2024 . NDTV Profit . 6 March 2017 . en.
  44. News: Tech Mahindra to acquire Dynacommerce Holding . 5 September 2024 . The Times of India . 1 February 2019.
  45. News: Tech Mahindra to buy 65 pc stake in Mad*Pow for USD 17 million . 5 September 2024 . Business Standard.
  46. News: Tech Mahindra to acquire Zen3 Infosolutions for Rs 460 crore in all-cash deal . 5 September 2024 . Business Today . 24 February 2020 . en.
  47. News: Tech Mahindra acquires DigitalOnUS for $120 million . 5 September 2024 . BusinessLine . 20 April 2021 . en.
  48. News: Tech Mahindra to acquire Eventus Solutions Group for up to $44 million . 5 September 2024 . The Economic Times . 26 April 2021.
  49. News: Tech Mahindra acquires US cloud consulting firm Brainscale . 5 September 2024 . Business Standard.
  50. News: Tech Mahindra acquires Lodestone, WMW . 5 September 2024 . The Economic Times . 25 October 2021.
  51. News: Tech Mahindra buys Activus . 5 September 2024 . Mint.
  52. News: Tech Mahindra to acquire 100% stake in US-based Allyis Group . 5 September 2024 . Mint.
  53. News: Tech Mahindra Acquires Com Tec Co IT Ltd and invests in two InsurTech platforms . 5 September 2024 . The Economic Times . 17 January 2022.
  54. News: Tech Mahindra to completely acquire Thirdware for Rs 320 cr . 5 September 2024 . Business Standard.
  55. Web site: Tech Mahindra > Location Details . 2012-10-01.

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