Tech Mahindra to buy 18.1% stake each in lnfotek Software and Systems, Vitaran for up to Rs 13 cr

IT services major Tech Mahindra Tuesday said it will acquire 18.1 per cent stake each in Infotek Software and Systems (ISS) and Vitaran Electronics for a consideration of up to Rs 13 crore. "...The Investment Committee of the Board of Directors of the company has approved the proposal to acquire 18.1 per cent equity shares each of ISS and Vitaran Electronics," Tech Mahindra said in a regulatory filing. The cost of transaction -- being carried out in cash -- is up to Rs 13 crore, it added.

Tech Mahindra intends to leverage the presence of the companies in the radio-frequency identification (RFID) space in building a strong footprint in the asset monitoring, tracking and automated billing solutions space, it added. The investment will also help expand Tech Mahindra's solution portfolio to cater to the smart city projects, the filing said.

For the 12-month period ending September 30, 2018, ISS had a revenue of Rs 29.2 crore, and Vitaran had a revenue of Rs 12.6 crore. ISS was incorporated in 2000 and is engaged in trading of RFID products and providing supporting installation and software maintenance services.

Vitaran, on the other hand, was set up in 2006 and is engaged in trading of RFID products which form part of access control systems.