Tech Mahindra to buy UK-based digital firm as buyout spree continues

MUMBAI: Tech Mahindra said it agreed to buy UK-based digital technology firm The BIO Agency for an enterprise value of 40 million pounds , as it continues its acquisition spree.



Last month, the IT arm of the Mahindra Group bought UK-based financial services firm Target Group in a deal valued at more than 112 million pounds. It bought fabled Italian car design firm Pininfarina in December



“The BIO Agency and Tech Mahindra will create one of the world’s leading innovation practices. A combination of BIO’s visionary thinking and delivery with Tech Mahindra’s IT to Digital Transformation strategy will enable and create digital services,” CP Gurnani, CEO of Tech Mahindra, said in a statement.



The deal also includes a surplus cash component of not more than 5 million pounds. The company will pay 22 million pounds and for the surplus cash upfront and the rest will be deferred based on BIO Agency’s performance.



Tech Mahindra said the management of BIO Agency will also be rewarded based on the revenue they bring in over the next three years.



BIO had revenue of 12.5 million pounds in FY16, up from 7.3 million pounds in FY15.



The UK company names Lloyds Banking Group, Western Union, Coca Cola, Selfridges, Easyjet, BBC and Microsoft among its clients.