Tech Mahindra To Pay Rs 121 Crore For 65% Stake In Mad*Pow
Information Technology company Tech Mahindra will pay $17 million (about Rs 121 crore) to acquire 65 percent stake in U.S.-based strategic design consultancy firm Mad*Pow.
"On behalf of Tech Mahindra, we would like to clarify that the analyst call transcript has a typo wherein the number of $17 million has been mistakenly mentioned as $70 million," Tech Mahindra spokesperson said in a statement on Tuesday.
The company announced plans to acquire Mad*Pow on July 30.
The analyst call transcript of Tech Mahindra earlier quoted Vivek Agarwal, head for corporate development & BFSI at Tech Mahindra, saying the company is buying 65 per cent upfront for $70 million.
Tech Mahindra Managing Director and Chief Executive Officer CP Gurnani said Mad*Pow is a 70-people strong organisation with capability in customer experience, human center design and understanding of behavioral science which will give Tech Mahindra a significant edge in digital transformation projects.
Agarwal said Mad*Pow's revenue for the current year is at $17.5 million (about Rs 122 crore) and the margin is in the mid-teens.
"The way we have looked at this acquisition is significant part of synergy opportunity across healthcare, financial services and the media industry," he said.
Mad*Pow acquisition is expected to help Tech Mahindra boost its capabilities in customer experience and digital transformation, user experience design, behaviour change design, content strategy, mobile app and web development, data science and analytics, among others.
Corrects an earlier version of PTI which reported the deal figure at $70 million.