Acquires controlling stake in Comviva Technologies Limited
Builds 360 degree portfolio in Mobile VAS, Mobile Money and Mobile payments
For Immediate Release
New Delhi, India, September 17, 2012 –
Tech Mahindra Limited, India’s sixth largest software
exporter today, announced the acquisition of 51% stake on a fully diluted basis in Comviva
Technologies Limited, a Bharti Group Company, and a global leader in providing mobile Value Added
Services (VAS), Mobile Money and Mobile Payment solutions, for a value of INR 260cr. The deal will
be subject to regulatory approvals.
The new brand identity will be
Mahindra Comviva, reflecting the combined strength and spirit of
both the entities.
As part of this arrangement, Tech Mahindra will make an upfront payment of INR 125cr towards the
stake acquired and the balance amount of INR 135cr will be paid out over a period of five years
based, on Comviva achieving mutually agreed performance targets. The current promoters will
continue to hold a 20% stake on a fully diluted basis in Comviva, post the deal closure.
Commenting on this move, Vineet Nayyar, Executive Vice Chairman, Tech Mahindra
acquisition is a significant step forward, in our vision of being a complete and comprehensive partner
to our clients and like always, we are confident of making this a successful venture for our
stakeholders. In addition to the market leading capabilities, this will also add to our relationship with
large operator groups across the world.
The world of mobility today encompasses wide range of solutions, where customers be it enterprise
or consumers are driving their business and entertainment needs through mobility. This acquisition
marks our strong intent and entry into the world of mobility products. We are adding significant
capability in areas such as payments and VAS,
added CP Gurnani, Managing Director, Tech
Rakesh Bharti Mittal, Chairman, Comviva
said, “Comviva has established itself as a gobal leader in
mobile solutions beyond VAS within a short span and has built a solid foundation for the next phase of
its growth. We believe that Tech Mahindra, with its deep domain expertise in IT and telecom
technologies, is an ideal partner to guide the future growth story of Comviva. We will continue to
support Tech Mahindra in their endeavour to take Comviva to the next level and wish them success.
“The combined entity will bring end
-to-end capabilities of products, system integration and services in
the mobile VAS, money & payments space. Our enhanced customer experience management offerings
will deliver greater value to all our existing customers globally, and provide opportunities for
added Manoranjan (Mao) Mohapatra, CEO, Comviva.
This acquisition will significantly enhance Tech Mahindra’s capabilities in the mobile VAS domain and
will provide access to a marquee client base, enabling significant cross-selling opportunities. It
dovetails into two of Tech Mahindra’s stated strategie
s, namely investing in emerging areas such as
Network, Mobility, Analytics, Cloud and Security and further focus on non-
linear growth. Comviva’s
primary focus and business model is expected to strengthen this aspiration.
Comviva has an extensive portfolio of solutions spanning mobile money and payments, mobile data,
integrated messaging, mobile lifestyle and customer life cycle management solutions, which enable
mobile service providers to enrich mobile users’ lives, whilst rationalizing costs, accelerat
growth and enhancing customer lifetime value.
Comviva’s solutions are deployed with over 130
service providers and banks in over 90 countries across Asia, Africa, Middle East, Latin America and
Europe, and powers services to more than a billion mobile subscribers.
vast geographic reach and access to global telecom players will enable Comviva to
take integrated solutions and products to a larger base. Comviva will further bring its Managed VAS
capabilities to the table, which increases
operators’ revenues across VAS services by up to 20%,
speed time to market by over 40% and reduce overall VAS delivery and management costs by 35%.
About Tech Mahindra:
Tech Mahindra is a leading provider of solutions and services to the telecommunications industry with a majority stake owned by
Mahindra & Mahindra Limited. Tech Mahindra serves telecom service providers, equipment manufacturers, software vendors and
systems integrators worldwide and their proven delivery models, distinctive IT skills and decades of domain expertise enable clients to
maximize returns on their IT investment by achieving fast time to market reduced total cost of ownership and high customer
Tech Mahindra registered revenue of USD 1,156 million in the year ended March 31, 2012 and is ably supported by around 41,000
professionals who provide a unique blend of culture, domain expertise and in-depth technology skill-sets.
A SEI-CMMi Level 5 organization, Tech Mahindra’s development centers are ISO 9001:2008 and BS7799 certified. Tech Mahindra has
principal offices in the UK, United States, Germany, UAE, Egypt, Singapore, India, Thailand, Taiwan, Malaysia, Philippines, Canada and
Tech Mahindra Ltd is part of the US $15.4 billion Mahindra Group, a global industrial federation of companies and one of the top 10
business houses based in India. The Group’s interests span automotive products, aviation, components, farm equipment, financial
services, hospitality, information technology, logistics, real estate and retail. In 2011, Mahindra featured on the Forbes Global 2000 list,
a listing of the biggest and most powerful listed companies in the world. Dun & Bradstreet also ranked Mahindra at No. 1 in the
automobile sector in its list of India’
s Top 500 Companies. In 2010, Mahindra featured in the Credit Suisse Great Brands of Tomorrow.
In 2011, Mahindra acquired a majority stake in Korea’s SsangYong Motor Company.
For more information please refer to the website:
About Comviva Technologies Ltd.
Formed in 1999, Comviva has grown rapidly to become the global leader in providing mobile VAS and financial solutions. With an
extensive portfolio of solutions spanning VAS infrastructure, application delivery platforms and customer-facing applications, Comviva
enables mobile service providers and banks to enrich mobile users’ lives, whilst rationalizing costs, accelerating revenue gr
enhancing customer lifetime value. Comviva is one of the pioneers in Managed VAS services and provides comprehensive,
standardized approach to end-to-
end service management. Comviva’s solutions are deployed by over 130 service providers and banks
in over 90 countries and power services to more than a billion mobile subscribers globally.
During the past decade, Comviva has expanded to serve its customers’ needs, establishing hubs in Asia, Africa, Europe, Latin
and the Middle East. By meeting the diverse demands of operators and banks in a multitude of locations, Comviva has gained extensive
market expertise and know-how, which it now exploits to provide a differentiated portfolio of offerings across the globe and to ensure
timely delivery against commitments, regardless of the on-the-ground conditions.
For more information, please visit www.comviva.com
About Bharti Group
Bharti Enterprises is one of India’s leading business groups with interests in telecom, agri business, financial services, retail and
manufacturing. Bharti has been a pioneering force in the Indian telecom sector with many firsts and innovations to its credit. Bharti
Airtel Limited, the group’s flagship company, is an integrated telecommunications company with operations in 20 countries across Asia
and Africa. The Company ranks amongst the top 5 mobile service providers globally in terms of subscribers.
Other business ventures of the group include Bharti Softbank – a JV between Bharti Enterprises and Softbank Corp – for mobile
internet. Beetel Teletech, a group company, is India’s India’s leading manufacturer and distributor of telecom and allied products. The
group has a JV
–FieldFresh Foods – with Del Monte Pacific Ltd, to offer fresh and processed fruits and vegetables in the domestic as
well as international markets. Bharti has JVs with AXA, world leader in financial protection and wealth management, for Life Insurance,
General Insurance and Asset Management. The group has presence in the retail sector through Bharti Retail that operates stores in
multiple formats. It also has a JV – Bharti Wal-Mart – with Wal-Mart for wholesale cash-and-carry and back-end supply chain
management operations in India.