Tech Mahindra to Merge Born Group Inc. with Tech Mahindra (Americas) Inc

26 Mar 2024 , 10:53 AM

Tech Mahindra announced on March 23, 2024, its decision to merge its wholly-owned step-down subsidiary, Born Group Inc., with its parent company, Tech Mahindra (Americas) Inc.

The merger plan was approved by both companies on March 22, 2024, and was officially disclosed through a stock exchange filing. Tech Mahindra received confirmation of the merger on March 23, 2024, at 9:22 am. The merger’s appointed date is set for April 1, 2024, pending regulatory approvals in the country of incorporation.

Born Group specializes in brand strategy, brand identity exploration, and visual design for mobile apps, and digital, and physical products in the US. On the other hand, Tech Mahindra (Americas) Inc. provides programming support services, computer consulting, and IT management and consulting services.

“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.

The consolidation of these entities is expected to result in business synergy, operational cost optimization, and reduced compliance risk, according to the stock exchange filing.

“The business of both entities are complimentary, hence consolidation of entities will result in the synergy of business operations, optimise operational cost and reduce the compliance risk,” the stock exchange filing said.

As both companies are wholly-owned subsidiaries, the merger will not involve any cash consideration or issuance of new shares.

According to the filing, BORN specializes in providing brand strategy, visual design, brand identity exploration, and related services for digital products, mobile apps, and physical products primarily in the US market. On the other hand, TMA offers computer consulting, programming support services, and IT management & consulting services.

Tech Mahindra (Americas) (TMA) operates as a wholly owned material subsidiary of the parent company. BORN, in turn, is a wholly owned subsidiary of TMA and a step-down wholly owned subsidiary of the parent company.

For the financial year ending on March 31, 2023, the turnover of BORN and TMA is reported as $55.08 Million and $1,201.37 Million respectively.

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