Tech Mahindra acquired the software service provider Com Tec Co IT Ltd. for ₹2,620 crores
On Monday, Tech Mahindra Ltd announced their acquisition of the software solution company Com Tec Co IT Ltd for ₹2,620 crores. CTC is a software service provider that operates out of Latvia and Belarus. Tech Mahindra aims to expand its offerings and enable high-end digital engineering services.
These solutions will help financial services clients all over the world. To further improve their offerings, Tech Mahindra is also investing a total of €20 million in Surance and SWFT. These are two InsurTech ventures funded by CTC, and the investment will give Tech Mahindra 25% ownership.
Tech Mahindra plans to expand
Tech Mahindra wants to be the forerunner in the digital transformation of insurance companies. They believe that they can open doors into the European market by acquiring CTC and helping insurers migrate to a cloud environment. In addition, they plan to provide an end-to-end engineering solution with a robust European nearshore presence. Both organizations believe that the acquisition will help them scale globally, while the shared expertise can help them develop and improve on their solutions.
Tech Mahindra acquisition spree
Indian companies have been heavily acquiring offshore companies, and Tech Mahindra is no different. With the completion of the CTC acquisition, this is the tenth company they have acquired in the last 12 months. Tech Mahindra is trying to bolster its portfolio and expand globally with the help of these acquisitions.
With CTC now working under Tech Mahindra, it is clear that they are well on their way towards global expansion and success in the financial services market. Time will tell if these acquisitions continue or if Tech Mahindra breaks to improve existing solutions and services.