Tech Mahindra Ltd said on Tuesday it will acquire an 18.1% stake each in Infotek Software & Systems Pvt. Ltd and Vitaran Electronics Pvt. Ltd for a total of up to Rs 13 crore.
“…the Investment Committee of the Board of Directors of the company has approved the proposal to acquire 18.1 percent equity shares each of ISS and Vitaran Electronics,” Tech Mahindra said in a regulatory filing.
The software services company said it will use the target companies’ presence in the radio-frequency identification (RFID) segment to build a footprint in the asset monitoring, tracking and automated billing solutions market.
The investment will also help expand Tech Mahindra’s portfolio of solutions to cater to smart-city projects, the company said in a stock-exchange filing.
Infotek, which was set up in 2000, sells RFID products and provides installation and software maintenance services. The company clocked revenues of Rs 29.28 crore in the 12 months ended 30 September 2018.
Vitaran, which was incorporated in 2006, sells RFID products in access control systems. The company registered revenue of Rs 12.68 crore in the 12 months ended 30 September 2018.
In March 2017, the company acquired US-based healthcare software provider CJS Solutions Group LLC for an enterprise value of $110 million (Rs 734 crore).
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