Tech Mahindra, India's leading IT services and consulting company, announced the merger of its wholly-owned subsidiary Born Group with its parent company Tech Mahindra (Americas) Ltd., as both companies approved the merger on Friday. That is March 22, 2024.
“Planned Merger of Born Group, Inc., a Wholly Owned Subsidiary of the Company, and its Parent Company, Born Group, Inc.” Tech Mahindra (Americas) Inc., a Wholly Owned Subsidiary of the Company, will be merged with Born Group, Inc., a wholly owned subsidiary of the Company, on Friday, March 22, 2024. Approved by the respective companies,” the Pune-based company said in a regulatory filing.
The move is aimed at synergizing business operations, optimizing operating costs and reducing compliance risks.
The proposed merger date is April 1, 2024, and the merger is subject to regulatory approval in the country of incorporation, according to stock exchange filings.
According to the filing, Born specializes in providing brand strategy, visual design and brand identity exploration for digital products, mobile apps and physical products in the US, while Tech Mahindra (USA) offers computer consulting, We provide programming support services; IT management and consulting services.
“The businesses of both BORN and TMA are complementary, so combining the entities will provide synergies in business operations, optimize operating costs and reduce compliance risks.” Mahindra said in a regulatory filing.
“The proposed merger does not include any cash consideration or issuance of new shares. TMA's investment in Born will be canceled once the merger becomes effective,” the company added.
The company's shareholding pattern will remain unchanged.
Vaughn and TMA's revenue for the fiscal year ended March 31, 2023 was $55.08 million and $1,201.37 million, respectively, according to the filing.
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