Tuesday, 5 November 2019

Tech Mahindra acquires BORN Group


IT services firm Tech Mahindra Ltd has acquired BORN Group, a New York based digital content and production agency for $95 Million in a cash deal. BORN Group’s services include consulting, content creation, maintenance and hosting services, digital and social marketing, among others. Its clients include Google, Tata, Red Bull and Tag Heuer.
BORN currently has offices in New York City, London, Hong Kong, Singapore and India and employs over 1100 people. The company is owned by private equity firm True North and Zodius Capital. True North acquired a controlling stake in the company in 2011, when it was known as Group FMG. In 2012 Group FMG acquired New York-based creative digital agency Pod1 Inc. The company rebranded itself as BORN Group in 2014.

BORN recorded a revenue of $50 million in calendar year 2018, compared to $39 million and $36 million in the preceding two years. Tech Mahindra Ltd will acquire the Indian subsidiary of Born Group, while Tech Mahindra Pte., the IT firm’s Singapore arm will acquire all other entities of Born, with the transaction expected to close by November 15, 2019.

While the enterprise value of the company has been pegged at $95 million, the transaction also includes a future pay-out of $25 million linked to achievement of financial targets for the financial year ending 31 December 2019. 

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