Information technology services and consulting company Tech Mahindra Ltd has sold its stake in US-based telecom software development firm Altiostar Networks Inc for $45 million (Rs 330.4 crore).
The Mahindra Group company said in a stock market disclosure Wednesday it sold its holding of over 18.51 million preferred shares in Altiostar to Rakuten USA, Inc.
Tech Mahindra had bought a 17.5% stake in Altiostar for $15 million in January 2018.
As Tech Mahindra was a minority investor in Altiostar, the American company didn’t contribute to its financials for the last financial year.
Tech Mahindra also said that it has been appointed as a preferred partner to support the development and deployment of Rakuten Communications Platform (RCP) of Rakuten Mobile Inc.
Rakuten Mobile, part of the Japanese conglomerate Rakuten Group, is responsible for mobile communications, including mobile network operator and mobile virtual network operator businesses. It is also responsible for information and communications technology as well as energy businesses.
Meanwhile, Tech Mahindra has made several acquisitions in recent years to ramp up its offerings and skill sets.
In February, for instance, Tech Mahindra agreed to acquire US-based Zen3 Infosolutions (America) Inc. and its Indian unit for up to $64 million (Rs 460 crore) in cash.
In November last year, Tech Mahindra had decided to acquire Born Group Pte. Ltd and its Indian unit to enhance its consulting capabilities. In July 2019, it had agreed to acquire a majority stake in US design consultancy Mad*Pow Media Solutions LLC.
In June last year, the Indian company said it was acquiring Canadian IT consultancy Objectwise Consulting Group Inc. And in April, the IT firm said it would acquire an 18.1% stake each in Infotek Software & Systems Pvt. Ltd and Vitaran Electronics Pvt. Ltd for a total of up to Rs 13 crore.