Tech Mahindra to merge two US-based subsidiaries
The turnover of BORN and TMA for the financial year 2023 is $55.08 mn and $1,201.37 mn
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New Delhi: IT services and consultation company Tech Mahindra said it plans to merge its two wholly-owned subsidiaries, Born Group and Tech Mahindra (Americas), to synergise business operations, optimise operational costs, and reduce compliance risks.
The merger is subject to regulatory approvals in the country of incorporation. According to a regulatory filing, the appointed date of the plan of merger is April 1, 2024.
"A Plan of Merger of Born Group, Inc., a wholly-owned step-down subsidiary of the Company with its parent company viz. Tech Mahindra (Americas) Inc., a wholly-owned material subsidiary of the Company, has been approved by the respective companies on Friday, 22nd March 2024," the company said.
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, TMA provides computer consulting, programming support services and IT Management & Consulting Services.
Tech Mahindra (Americas) (TMA) is a wholly owned material subsidiary of the company. BORN is a wholly owned subsidiary of TMA and a step-down wholly owned subsidiary of the company.
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.
"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," the company said.
It added that there will be no cash consideration or issue of new shares involved under the Plan of Merger. The investment of TMA in BORN will be cancelled on the merger becoming effective. The shareholding pattern of the company will remain unchanged.
