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Tech Mahindra To Buy 51% Of Comviva From Promoters

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Indian software services provider Tech Mahindra has agreed to buy 51 per cent of Comviva Ltd., a mobile phone software maker, the company told reporters on Monday. The deal is valued at Rs 260 crore, and the promoters will retain a fifth of the company, Tech Mahindra said.
 
Billionaire Sunil Mittal's Bharti Group, which controls top telecoms carrier Bharti Airtel, is the biggest shareholder in Comviva. WestBridge Capital, Sequoia Capital and Cisco Systems Inc are the other investors.
 
Tech Mahindra, a unit of tractor and sports utility vehicles maker Mahindra & Mahindra, earlier this month agreed to buy Hutchison Whampoa Ltd's back-office call centre business in India for $87.1 million.
 
Meanwhile, Bank of America Merrill Lynch has upgraded Infosys and Tech Mahindra to 'buy' from 'neutral' citing improved revenue confidence and hopes of better earnings. The investment bank says anecdotal evidence indicates deal closures are picking up and softness in the banking vertical is bottoming. Infosys rose 1.7 per cent, while Tech Mahindra gained 1.8 per cent.
 
(Reuters)