-By ArdorComm News Network
March 27, 2024
Tech Mahindra, a prominent IT services and consulting company, has announced its intention to merge two of its wholly-owned subsidiaries, Born Group and Tech Mahindra (Americas). The move aims to streamline business operations, optimize costs, and mitigate compliance risks.
The merger proposal, subject to regulatory approvals in the respective countries of incorporation, sets April 1, 2024, as the appointed date. This strategic decision, approved by both entities on March 22, 2024, signifies a consolidation of resources and capabilities within the Tech Mahindra ecosystem.
Born Group, specializing in brand strategy and visual design for digital and physical products in the US market, and Tech Mahindra (Americas), offering computer consulting and IT management services, will align their operations to capitalize on synergies and enhance overall efficiency.
Tech Mahindra (Americas) serves as a significant subsidiary of Tech Mahindra Ltd, with Born operating as a wholly-owned subsidiary of TMA. The consolidated turnover for the financial year ending March 31, 2023, stands at USD 55.08 million for Born and USD 1,201.37 million for TMA, according to regulatory filings.
The merger is anticipated to result in operational synergies, cost optimization, and reduced compliance risks, leveraging the complementary nature of Born and TMA’s businesses. Notably, there will be no cash consideration or issuance of new shares as part of the merger process. The investment of TMA in Born will be nullified upon the merger’s completion.
Despite the merger, the shareholding pattern of Tech Mahindra will remain unaffected, ensuring continuity in ownership structure.