Tech Mahindra has confirmed it is to take a controlling stake in mobile payments and services company Comviva.
Tech Mahindra will buy the 51-percent stake in India-based Comviva from its current owner, the Bharti Group conglomerate, for 2.6bn rupees (£30m). Tech Mahindra will pay out around half of the agreed amount upfront, and the rest over the coming five years.
The deal is around one-third of the size that rumours had it – late last month, the companies were thought to be discussing an arrangement worth 7.5bn rupees (£85m).
Comviva, which offers products including managed services and infrastructure and application delivery platforms for telcos as well as customer-facing applications, will be rebranded as Mahindra Comviva.
CP Gurnani, Tech Mahindra's managing director, said the deal shows the company's ambitions in mobile. "The world of mobility today encompasses wide range of solutions, where customers be it enterprise or consumers are driving their business and entertainment needs through mobility. This acquisition marks our strong intent and entry into the world of mobility products. We are adding significant capability in areas such as payments and VAS [value added services]."
According to Tech Mahindra, its "vast geographic reach and access to global telecom players will enable Comviva to take integrated solutions and products to a larger base" while allowing it grow non-organically and invest in cloud and mobile.
Comviva has 130 service provider and bank customers in 90 countries.
The acquisition marks Tech Mahindra's second major buy this month, following its acquisition of BPO company Hutchison Global Services for $87.1m.