Tech Mahindra | Image:X Photo
Tech Mahindra has unveiled plans to merge its two wholly-owned subsidiaries, Born Group and Tech Mahindra (Americas), in a move aimed at enhancing operational efficiencies and minimising compliance risks.
The merger, subject to regulatory approvals, is set to optimise operational costs and streamline business operations. As per a regulatory filing, the proposed merger is scheduled to take effect from April 1, 2024.
“A Plan of Merger of Born Group, Inc., a wholly-owned step-down subsidiary of the Company with its parent company viz. Tech Mahindra (Americas) Inc., a wholly-owned material subsidiary of the Company, has been approved by the respective companies on Friday, 22nd March 2024,” Tech Mahindra said.
Born Group, established in the US in 2011, specialises in brand strategy, visual design, and brand identity exploration for digital products, mobile apps, and physical products. Conversely, Tech Mahindra Americas, founded in 1993, offers computer consulting, programming support services, and IT management & consulting services.
Financial data for the fiscal year ended March 31, 2023, underlined the scale and capabilities of both entities, with Born reporting a turnover of $55.08 million and Tech Mahindra Americas recording $1,201.37 million.
Tech Mahindra aims to leverage synergies arising from the merger, aligning with the complementary nature of Born and TMA’s businesses. The consolidation is anticipated to optimize operational costs, mitigate compliance risks, and enhance the overall value proposition for clients.
Tech Mahindra’s shares closed 1.33 per cent lower at Rs 1,265 ahead of the merger announcement on Friday.
(With PTI inputs)
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