Tech Mahindra, India’s one of leading IT services and consultation firms, has said that the company will be merging its wholly-owned step down subsidiary Born Group with its parent company Tech Mahindra (Americas) Inc as the respective companies have approved the consolidation on Friday i.e. March 22, 2024.
“A Plan of Merger of Born Group, Inc., wholly-owned step down subsidiary of the Company with its parent company viz. Tech Mahindra (Americas) Inc., wholly owned material subsidiary of the Company, has been approved by the respective companies on Friday, 22nd March, 2024,” the Pune-based company said in a regulatory filing.
The move aims to synergise business operations, optimise operational cost, and reduce compliance risks.
According to the stock exchange filing the appointed date of the plan of merger is April 1, 2024 and the merger is subject to regulatory approvals in the country of incorporation.
As per the filing, while Born specializes in providing Brand strategy, visual design, brand identity exploration, and more for digital products, mobile apps, and physical products in the US, the Tech Mahindra (Americas) provides computer consulting, programming support services and IT Management & Consulting Services.
“The business of both entities BORN and TMA are complimentary hence consolidation of entities will result in synergy of business operations, optimize operational cost and reduce the compliance risk,” Tech Mahindra said in the regulatory filing.
“No cash consideration or issue of new shares involved under the Plan of Merger. The investment of TMA in Born will get cancelled on the merger becoming effective,” the company added.
The shareholding pattern of the company will remain unchanged.
According to the filing, the turnover of Born and TMA for the financial year ended 31st March 2023 is $55.08 million and $1,201.37 million respectively.