Tech Mahindra in talks to acquire more firms: Anand Mahindra

Tags: Companies
Country's fifth largest software services firm Tech Mahindra is in talks to acquire technology firms, both in India and overseas, to enhance competencies and geographic reach, its Chairman Anand Mahindra said.

Mahindra, who is also the Chairman of the over $16 billion Mahindra Group, said acquisitions have become a part of the "DNA" of the Mumbai-based software services firm.

"Do I see more acquisitions, the answer is yes. It is the way we grow. You cannot move from fifth to where we are to aspirationally higher without acquisitions in my opinion and that what I tell our people," Mahindra told PTI.

He further said: "I don't think we can wait only for organic growth. Inorganic has become a part of the DNA thanks to Satyam and other acquisitions, which are much more smaller. Will you see more acquisitions, I hope yes. Are we working on some? Yes. I will, of course, not divulge the details."

In the last two financial years, Tech Mahindra has acquired seven firms, including Satyam Computer Services, Hutchison Global Services and Comviva Technologies.

On the nature of acquisitions, Mahindra said it is for building competencies, geographies and clients.

"You do acquisitions because you want to get new clients, infiltrate a new client or a new geography or most important to build new competencies. Will we see more of them? Yes," he added.

Mahindra said the buyouts could be both in India as well as overseas markets.

"We are open to all. I am open to smaller ones that may take us to newer areas. Sometimes (for) the most innovative cutting edge areas, a small garage start up may have the technology. Some entrepreneurs might want to sell or scale up. We are open to all kinds of acquisitions," he added.

He added that the size could vary from garage start ups that have requisite technology and to larger companies that will build scale.

Tech Mahindra reported 27 per cent jump in consolidated net profit at Rs 686.3 crore for the April-June quarter against a net profit of Rs 540.5 crore in the year-ago period.

Its revenues stood at Rs 4,103.2 crore in the reported period, up 21.7 per cent in the second quarter of this fiscal compared to Rs 3,372.7 crore in the same quarter of 2013-14.

In USD, revenues stood at $724 million (up 17.7 per cent year-on-year), while net profit was at $121 million (up 22.3 per cent y-o-y).

EDITORIAL OF THE DAY

  • Wean off the dependence on increased tax collection from diesel and petroleum

    As reported by this paper, despite international crude oil prices ruling in a range of $50 to $60, Indian consumers are paying the same prices as they

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

Cut & Thrust: Interesting times

Russia’s ultra nationalist supreme leader, the all powerful Vladimir Putin ...

Sachin Shridhar

Strip numbers, see truth

Indian Parliament has over has over 34 per cent of ...

Rajgopal Nidamboor

That divine mosaic of art and science

Our old, inborn fancy to present complex explanations as a ...