Indian software company Tech Mahindra Ltd. announced today that it has acquired a 51 percent stake in Comviva Technologies Ltd., a provider of mobile money and mobile payment solutions, in a deal worth 260 crore ($48 million). The new company will be called Mahindra Comviva.
The world of mobility today encompasses a wide range of solutions, with both enterprise and consumers driving their business and entertainment needs through mobility, said CP Gurnani, managing director of Tech Mahindra. "This acquisition marks our strong intent and entry into the world of mobility products. We are adding significant capability in areas such as payments and [value-added services]," he said.
Comviva provides a number of mobile payment-related services as well as mobile data, messaging and management services for telecommunications companies and financial institutions. The company said its solutions are deployed in more than 90 countries, with more than 130 service providers reaching more than a billion subscribers. Tech Mahindra provides software and technical solutions primarily to the telecom industry.
"This acquisition is a significant step forward in our vision of being a complete and comprehensive partner to our clients and, like always, we are confident of making this a successful venture for our stakeholders," said Tech Mahindra EVP Vineet Nayyar. "In addition to the market-leading capabilities, this will also add to our relationship with large operator groups across the world."
The deal is structured so that Tech Mahindra will pay 125 crore ($23 million) upfront with the balance to be paid over five years depending upon Comviva hitting perfromance targets.
"Comviva has established itself as a gobal leader in mobile solutions beyond VAS within a short span and has built a solid foundation for the next phase of its growth," Rakesh Bharti Mittal, Comviva's chairman, said. "We believe that Tech Mahindra, with its deep domain expertise in IT and telecom technologies, is an ideal partner to guide the future growth story of Comviva."