Indian Bharti Group, owner of Bharti Airtel, has reduced its stake in mobile solutions business Comviva in a deal seeing software firm Tech Mahindra acquiring a controlling interest of 51% in the company.
Bharti, which previously held a majority stake…
Indian Bharti Group, owner of Bharti Airtel, has reduced its stake in mobile solutions business Comviva in a deal seeing software firm Tech Mahindra acquiring a controlling interest of 51% in the company.
Bharti, which previously held a majority stake in the company, will keep on to a 20% stake.
In a statement Tech Mahindra said it paid a total of Rs2.6bn (US$48.3m) for the 51% stake. Sellers also included Cisco Systems and PE firm Sequoia Capital, according to local media reports.
Tech Mahindra said it will pay Cr125 (US$23.2m) upfront to the shareholders, followed by Cr135 (US$25.1m) over five years based on Comviva achieving unspecified performance targets.
Comviva, which will be rebranded Mahindra Comviva, has a portfolio of products spanning mobile money and payments, mobile data, integrated messaging, mobile lifestyle and customer life cycle management solutions.
“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 Vineet Nayyar, executive vice chairman of Tech Mahindra.
“In addition to the market leading capabilities, this will also add to our relationship with large operator groups across the world,” he said.
Comviva reportedly counts Vodafone, NTT Docomo, Aircel, and Idea among its customers.
The deal is subject to regulatory approvals.
