Tech Mahindra Ltd said on Friday it has agreed to acquire a 100% stake in Momenton Pty Ltd as part of efforts to strengthen its financial services presence in the Australian market.
Earlier in the week, the listed infotech (IT) company acquired a minority stake in Texas, US-based health-tech startup VitalTech Holdings Inc.
Tech Mahindra acquired the Melbourne, Australia-headquartered company in a 14.3 million AUD or Australian dollars ($10.22 million) deal that will enhance its digital transformation capabilities and provide a scaled-up presence in the Australian BFS (banking and financial services) market, according to a stock exchange announcement.
Momenton is a cloud and engineering services provider with a BFS focus.
The acquisition, expected to close by 31 March 2021, is subject to regulatory approvals from the Foreign Investment Review Board of Australia.
The company has 55 employees with a turnover of AUD 10.8 million for the financial year ended June 2020. It reported annual turnovers of AUD 7 million by 30 June 2019 and AUD 7.1 million by the end of June 2018.
Tech Mahindra, like bigger rivals Infosys Ltd and Wipro Ltd, has been investing in startups or making acquisitions to strengthen its skills in areas such as digital transformation, cloud computing and artificial intelligence.
Earlier this year, the Pune-based company agreed to acquire Bengaluru-based Cerium Systems Pvt Ltd and US-based Zen3 Infosolutions (America) Inc.
In November last year, Tech Mahindra had agreed to acquire Born Group Pte Ltd and its Indian unit as part of efforts to enhance consulting capabilities.
In July 2019, Tech Mahindra had agreed to acquire a majority stake in US design consultancy Mad*Pow Media Solutions LLC. The month before, it decided to acquire Canadian IT consultancy Objectwise Consulting Group Inc.
In April last year, the IT firm sealed a deal to acquire a 18.1% stake each in Infotek Software & Systems Pvt Ltd and Vitaran Electronics Pvt Ltd for a total of up to Rs 13 crore.