The Hindu BusinessLine: February, 2014
Mumbai: With an eye on increasing revenues from Europe, IT solutions company Tech Mahindra will acquire the software services unit of German chemicals giant BASF.
The German unit of the Mahindra group company has entered into an agreement with BASF Business Services Holding GmbH to acquire its business with third party customers, according to a press statement. Tech Mahindra would take over the Hamburg-based BASF Business Services Consult GmbH as part of the deal. Financial details of the transaction were not disclosed.
This acquisition will add to Tech Mahindra’s capabilities in the areas of application and infrastructure business services.
“Following this strategic decision, the company will not continue its business with third party customers, which has sales in the low double-digit million euro range,” BASF Business Services said in a statement posted on its website.
Indian IT companies seem to be on a shopping spree in Continental Europe, despite the lacklustre economic environment in the region. Demand for IT services in France and Germany has been strong since the region is largely under-penetrated by offshoring companies.
Speaking about the deal, Vikram Nair, Head – Europe (Enterprise), Tech Mahindra, said: “It will bring us closer to our customers and will help us deliver holistic solutions. I’m confident that the acquisition will spur rapid growth in this region.” The transaction is expected to close in the first quarter of next fiscal. All 60 staff of BASF Business Services Consult GmbH will be transitioned to Tech Mahindra, the companies said.