Tech Mahindra announced the merging of two US-based subsidiaries

Tech Mahindra announced merge with Born Group and Tech Mahindra (Americas) for efficiency and risk reduction

Tech Mahindra, an IT services and consultation firm, has announced its intention to merge two of its wholly-owned subsidiaries, Born Group and Tech Mahindra (Americas), with the aim of streamlining business operations, enhancing cost efficiency, and mitigating compliance risks. The proposed merger is subject to regulatory approvals in the respective countries of incorporation. As per a regulatory disclosure, the effective date of the merger plan is slated for April 1, 2024. Born Group specializes in providing brand strategy, visual design, and brand identity services for digital and physical products primarily in the US market, while Tech Mahindra (Americas) offers computer consulting, programming support services, and IT management and consulting services. Tech Mahindra (Americas) is wholly owned by Tech Mahindra.

According to the filing, Born Group reported a turnover of USD 55.08 million, whereas Tech Mahindra (Americas) recorded a turnover of USD 1,201.37 million for the financial year ending March 31, 2023. The company stated, "The businesses of Born Group and Tech Mahindra (Americas) complement each other, and the consolidation of these entities will lead to operational synergies, cost optimization, and reduced compliance risks." It further clarified that the merger will not involve any cash consideration or issuance of new shares. Additionally, the investment of Tech Mahindra (Americas) in Born Group will be nullified upon the completion of the merger.