The shares of Tech Mahindra gained over 2 per cent in an otherwise volatile market on Monday after the company announced its decision to acquire a 70 per cent stake in Perigord Asset Holdings Limited in the IT services industry.
At 10:35 am, it was trading at ₹1,025.10 on the BSE, up ₹21.20 or 2.11 per cent. It hit an intraday high of ₹1,027.50. It opened at ₹1,007.00 as against the previous close of ₹1,003.90.
On the NSE, it was quoting ₹1,026.00 per share, up ₹22.75 or 2.27 per cent.
Tech Mahindra buys 70 per cent stake in Perigord Asset Holdings
Tech Mahindra on Monday announced that it has acquired a 70 per cent stake in Perigord Asset Holdings Limited (“Perigord”), a digital workflow and artwork, labelling and BPO services firm, directly and indirectly through its wholly-owned subsidiary Mahindra Engineering Services (Europe) Ltd.
The acquisition will help the company’s expansion in the global pharmaceutical, healthcare and life science (HLS) sectors.
Building presence in key markets
Tech Mahindra Limited will acquire the Indian subsidiary of Perigord namely Perigord Data Solutions India Private Limited and Perigord Premedia (India) Private Limited. Mahindra Engineering Services (Europe) Ltd will acquire the other legal entities of Perigord, as per a regulatory filing.
Tech Mahindra acquires digital entities in Australia, New Zealand
€21 million will be paid upfront for 70 per cent shares and balance 30 per cent shares will be acquired over the next four years at a valuation linked to the financial performance of the company, it said. The transaction is expected to close by March 19, 2021.
“The strategic partnership will strengthen Tech Mahindra’s position as a leading digital transformation enabler in the artwork and packaging services space with an integrated platform and services portfolio,” the company said in an official release.
“Additionally, Tech Mahindra will leverage Perigord’s expertise and offerings to extend capabilities towards delivering efficiency and automation levers, across sectors including consumer-packaged goods (CPG), medical devices and over the counter (OTC) products to enable growth and scalability in the future,” it said.
The acquisition is part of the company’s long-term plan to build a presence across key markets in Ireland, Germany, US, and India.
