Tech Mahindra is reportedly in talks to buy Comviva Technologies from the Bharti conglomerate for 7.5 billion rupees (US$134.5 million).
The Economic Times reported Wednesday the two Indian companies were in advanced discussions regarding the sale of Comviva, previously called Bharti Telesoft, which is a mobile financial and value-added services (VAS) provider.
The report quoted an unnamed source familiar with the matter as saying Tech Mahindra had "signed the non-disclosure agreement and already completed due diligence of Comviva". A memorandum of understanding also had been signed and the valuation of the deal agreed upon, he said.
According to the source, the deal was delayed temporarily while the two parties resolved minor issues including the valuation of future contracts of Comviva. He added that the deal was in line with Bharti's efforts to focus on core businesses that generate bigger impact in the Indian market and abroad.
Spokespersons from both Tech Mahindra and Bharti said they do not comment on market speculation, Economic Times reported.
The news comes barely a week after Bharti sold its education and training subsidiary, Centum Learning, to Everonn Education for an undisclosed amount of cash and equity shares in Everonn. Centum Chairman Rakesh Bharti Mittal said in a separate Economic Times report the deal was part of Bharti's bid to exit non-core businesses and focus on its core ones.