Tech Mahindra, an IT services and consulting company, has announced that two of its wholly-owned subsidiaries, The Born Group and Tech Mahindra Americas (TMA), will create operational synergies, optimize operational costs and reduce compliance risks. announced that they would be merging. This was disclosed in a regulatory filing with the Bombay Stock Exchange.
The deadline for the merger plan is April 1, 2024.
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“The proposed merger between Bourne Group, Inc., a wholly owned subsidiary of the Company, and its parent company, Tech Mahindra Americas (TMA), a wholly owned subsidiary of the Company, has been approved by their respective parties.”Company will be announced on March 22,” the announcement said.
Born Group was founded in the United States in 2011 and specializes in providing brand strategy, visual design, and brand identity exploration for digital products, mobile apps, and physical products.
Tech Mahindra Americas (TMA) was founded in the United States in 1993 and provides computer consulting, programming support services, and IT management and consulting services.
In fiscal year 2024, Bourne had sales of $55.08 million, while TMA's sales reached $1,201.37 million, the company said.
The merger plan does not include any exchange of cash or issuance of new shares, the company said.
“As both the transferor and transferee companies are wholly owned subsidiaries, there will be no cash consideration or issuance of new shares pursuant to the proposed merger. TMA's investment in Born will be canceled once the merger becomes effective.” says the announcement.
It added that the merger will not affect the shareholding pattern of Tech Mahindra as it is not a part of the merger.
