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. 

Tech Mahindra to buy CJS Solutions Group

Software services firm Tech Mahindra Ltd has signed a definitive agreement to acquire CJS Solutions Group LLC; a US based healthcare information technology consulting company that does business as the HCI Group. The deal values CJS Solutions at an enterprise value of $110 Million.

The HCI Group works with global Tier-I healthcare service providers, primarily in the US and UK. It focuses on providing end-to-end implementation of electronic health record (EHR) and electronic medical record (EMR) software, training and support services. The company also has a presence in Europe, West Asia and Asia-Pacific and employs more than 500 professionals globally.

Healthcare and Life Sciences has been one of the focus areas for Tech Mahindra globally and the acquisition will help in consolidating its position. Healthcare is one of the few sectors globally that is driving adoption of digital technologies. The acquisition will not only position Tech Mahindra as a significant player in the healthcare provider space, but will also provide an opportunity to go deeper in the space via EMR implementation and surrounding services.

In May 2016, Tech Mahindra announced it will acquire UK based Target Group in a deal worth around £120 Million to strengthen its presence in the banking and financial services space. In June, it said it had acquired UK based digital transformation firm BIO Agency Ltd.

Tech Mahindra to acquire Target Group

IT services and solutions firm Tech Mahindra has agreed to enter into an agreement to acquire Target Group, one of the leading processing platform companies in the UK. The value of acquisition is $164 Million and an adjustment for surplus cash up to GBP 8 Million.

The acquisition catapults Tech Mahindra to one of the top three processors in UK financial services for certain complex lending and investment product categories. It also strengthens Tech Mahindra European presence and adds several new clients. The acquisition will make Tech Mahindra a formidable player in the UK BFSI market with over 50 major financial institutions as clients.

The acquisition is in line with Tech Mahindra strategy of expanding its Fintech capabilities and adding IP and platforms to drive non linearity and play aggressively in the BFSI sector. Headquartered in the UK, Target Group has 740 employees and a client franchise, including leading financial institutions such as Goldman Sachs, Morgan Stanley. Target Group also has a strong pipeline which provides for high earnings visibility and cash flow generation.

Target Group provides BPaaS offerings in the areas of lending and investment products servicing to its clients, on variable pricing models. The combination of proprietary software, strong regulatory compliance practice and domain knowledge is a key differentiator for Target Group. The acquisition will help Tech Mahindra to expand its offerings in the lending, savings and investment and insurance sectors.

Tech Mahindra buys Lightbridge Communications Corporation

Tech Mahindra is an Indian Multinational provider of Information Technology, networking technology solutions, and Business Support Services to the telecommunications Industry. It is a part of Mahindra Group. In recent news, the company acquires US based network solutions company Lightbridge Communications corporations for $240 Million.

This is the biggest deal of company outside India, will significantly strengthen its presence in the US, and is expected to add 20-30 more clients in the list. The deal will be finalized by the end of this fiscal and is funding the acquisition via internal accruals. Mahindra group looks to reach its stretch target of $5 Billion in revenue by 2015.

Headquartered in McLean, Virginia, LCC is one of the world’s largest independent global providers of network engineering services to the telecommunications industry, with more than 5000 employees in over 50 countries. With annual revenue of more than $400 Million, LCC has built 350 networks and designed more than 350,000 cell sites for over 400 customers worldwide. The acquisition positions Tech Mahindra as an important partner for network services globally.

This is the largest acquisition so far in this year in the IT services space. In July, India’s third largest software services firm WIPRO had acquired the IT services division of Canadian company Atco for US $195 Million. In September this year, Cognizant said it will acquire US based Trizetto Corporation for US $2.7 Billion in an all cash deal.

Rajendra Singh started LCC in 1983. With its acquisition, Tech Mahindra will become the only Indian IT services provider in the networking services management space, which is dominated by the like of Alcatel Lucent and Ericsson. In April 2013, Tech Mahindra had acquired the lab assets and operations of the Type Approval Lab, which was part of Sony Mobile Communication’s internal test function.