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September 19, 2012

Tech Mahindra and Comviva Technologies Team Up for Mobility Services

Indian IT giant, Tech Mahindra, recently announced its intention to acquire 51 percent stake in Comviva Technologies Limited, which renders mobile value added services of mobile payment and mobile money facilities.

The regulatory approval of the deal is worth $41 million.

This deal will be a massive step forward for Tech Mahindra to turn into an even larger corporation. The proposed brand name for the new venture is Mahindra Comviva, which indicates the union of spirits of these two companies. 

As per the agreement signed by the two companies, Tech Mahindra will have to pay $25 million at the beginning of the stake hand over. The remaining sum of money, however, will be paid over the next five years.

Both companies will need to match the performance target, as mutually agreed by them. The diluted basic stocks of 20 percent will be held by Comviva Technologies until the deal is through.  

Executive vice chairman of Tech Mahindra, Vineet Nayyar, said to the media that they had always wanted to be a complete service for all their clients. This agreement will not only give them the required vision to be the best partner for their clients; it’ll provide them the needed technical perfection as well. He assured their stake holders that this venture will be completely rewarding for them, as they are confident, like always, about good results.

With this agreement, according to Nayyar, the company will not only lead the Indian market, but see an increase in their connections with foreign operator groups as well.

Managing director of Tech Mahindra, CP Gurnani, felt the advancement in mobility technology has improved a lot in last five years, and the growth has been massive in last two years. He said that in today’s world, from business to entertainment, mobility technology is used for variety of sectors, with endless mobility services. Gurnani went on to add that the value-added services and mobile payment facilities are the prime areas on which they wanted to improve the most.

They were sure that they would be able to take the world of mobility farther with this acquisition.

Rakesh Bharti Mittal, chairman of Comviva Technologies, said they have always worked on building a better future with mobile technology. They have taken it beyond value-added services within a really short period of time, and their growth has been good enough to build a platform of possibilities for the future.

Mittal believes Tech Mahindra has the required technology and vision that make them capable enough to carry on the work, and that they will help them with everything required so that the partnership will bring great results. 

The firm will be working on making the services affordable and reachable to everyone.

Want to learn more about today’s powerful mobile ecosystem? Don't miss the Mobility Tech Conference & Expo, collocated with ITEXPO West 2012 taking place Oct. 2-5 2012, in Austin, TX. Stay in touch with everything happening at Mobility Tech Conference & Expo. Follow us on Twitter.

Edited by Braden Becker

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