February 28, 2025 | Mumbai, India
Tech Mahindra Limited (NSE: TECHM, BSE: 532755) has announced the approval of a
Plan of Merger between its step-down subsidiaries
Comviva Technologies USA, Inc. and
Comviva Technologies Americas, Inc. The merger was approved by the Board of Directors of the respective entities on
February 27, 2025, with the official notification received by Tech Mahindra on
February 28, 2025, at 10 AM IST.
Key Details of the Merger:
- Entities Involved:
- Comviva Technologies USA, Inc. (Transferor Company), incorporated in Florida, USA.
- Comviva Technologies Americas, Inc. (Transferee Company), incorporated in Delaware, USA.
- Both entities are wholly owned subsidiaries of Comviva Technologies Limited, India (a step-down subsidiary of Tech Mahindra).
- Financials (FY 2024 Ending March 31, 2024):
- Comviva USA: USD 0.65 million in turnover.
- Comviva Americas: USD 19.05 million in turnover.
- Rationale for Merger:
- Streamlining operations and reducing compliance-related risks.
- Optimization of operational costs.
- Improved business synergies between IT services and Video Storage and Processing Platform (VSPP)solutions.
- Transaction Structure:
- As Comviva USA is a wholly owned subsidiary of Comviva Americas, the transaction will not involve any cash consideration or new share issuance.
- Investments held by Comviva Americas in Comviva USA will be canceled post-merger.
- Regulatory Approvals & Effective Date:
- The merger is subject to regulatory approvals in the respective jurisdictions.
- The appointed date for the merger is March 1, 2025.
- Impact on Tech Mahindra:
- No change in shareholding pattern of Tech Mahindra as the company is not directly involved in the transaction.
Conclusion
The merger aligns with Tech Mahindra's strategic focus on
business consolidation and operational efficiency within its digital solutions subsidiary,
Comviva Technologies Limited. This move is expected to streamline
service offerings in the IT and digital platform space, further strengthening its foothold in the
North American market.