Tech Mahindra Ltd, a part of the multi-billion dollar Mahindra Group, has signed a definitive agreement to acquire Geneva's SOFGEN Holdings Ltd, a consulting and services company which has offices in four counties including India, for an undisclosed amount, as per a stock market disclosure.
The deal is subject to regulatory approvals and expected to close by March 2015.
With this acquisition, Tech Mahindra will have the capability to offer a unique combination of 'change the bank and run the bank' services to retail banking, private banking and wealth management customers globally.
Founded in Geneva, Switzerland in 1999, SOFGEN specialises in private/wealth, commercial and retail banking solutions. It has offices in Chennai, Singapore, London and New York. The firm employs over 500 people, serving over 150 clients and providing solutions and products that cover every aspect of IT development, from requirements definition and system selection to system implementation and on-going support.
“This acquisition gives us an opportunity to enhance our expertise to implement modernised core banking & transformation services capabilities. This milestone in the growth journey of Tech Mahindra will establish us as a significant player in the specialised & rapidly growing private banking and wealth management segment globally,” said CP Gurnani, MD & CEO, Tech Mahindra.
"Bringing SOFGEN into the Tech Mahindra fold will give us access to new geographies, and a different magnitude of customer relationship. The highly experienced consultant work-force, coupled with the size and scale of Tech Mahindra will help us deliver compelling value to our prestigious customers globally," said Alexander Dembitz, chairman, SOFGEN.
Tech Mahindra has been acquiring firms and striking partnerships to grow its business. In November, it signed a definitive agreement to acquire US-based global network services provider Lightbridge Communications Corporation (LCC) for $240 million.
In the past it has acquired and merged Satyam with itself.
It has struck a JV with global telecom technology firm Avion Systems where it will own a minority stake.
Tech Mahindra scrip shot up 4.4 per cent to close at Rs 2,680.1 a share in a strong Mumbai market on Friday.
Avendus Capital acted as the financial advisor to SOFGEN on this deal.
(Edited by Joby Puthuparampil Johnson)