Tech Mahindra to buy 100% stake in Allyis India and Green Investments

Tech Mahindra on Friday announced that it has approved the proposal to acquire 100% equity shares in Allyis India Private Limited and Green Investments for $125 million (approx. Rs 930 crore) in an all-cash deal. 

Allyis India is headquartered in Seattle, USA and has over 660 employees. Most of the top management of the company are Indians, and it also has a large employee base in India. 

"The Company approved the proposal to acquire 100% equity shares in Allyis India Private Limited and the Company's wholly-owned subsidiary viz., Tech Mahindra (Americas) Inc. approved the proposal to acquire 100% equity shares in Green Investments LLC, holding company for Allyis Group (together called as Target)," Tech Mahindra said in a regulatory filing. 

Also Read: Tech Mahindra group firm to hire 600 engineers by next July, targets 10-12% biz growth

For the financial year ending 31st December 2020, the company's revenue stood at $39.6 million. The filing further read that Tech Mahindra "will pay total consideration of up to $125 million including employment-related and performance-related earnouts." 

The company said that the acquisition will bolster Tech Mahindra's capabilities in digital experience solutions: learning & development, marketing, instructional design; engineering: cloud & automation, BI & analytics, technical support services.

Also Read: Tech Mahindra FY21 net profit up 9.8% to Rs 4,428 crore

Allyis India Pvt Ltd was incorporated in 2018 while Green Investments LLC was incorporated in 2013. 

The last three year's total turnover for the two entities stood at $39.6 million in CY20, $34 million in CY19 and $31 million in CY18. The CY21 turnover, for the first 11 months starting Jan 1, 2021. to Nov 30, 2021, was at $45.7 million.