Tech Mahindra Announces Merger of U.S. Subsidiaries for Operational Optimisation

Tech Mahindra Limited has announced the approval of the merger between its wholly-owned step-down subsidiary, Eventus Solutions Group, LLC, and its parent company, Tech Mahindra (Americas) Inc.

The merger was approved by the respective Boards of Directors on December 10, 2024, and is expected to be effective starting January 1, 2025, subject to regulatory approvals in the country of incorporation. The merger will consolidate the two entities, Eventus and TMA, which operate in complementary business domains, providing significant potential for synergy in operations.

Strategic Rationale Behind the Merger

Eventus Solutions, a US-based entity founded in 2009, offers a range of services including implementation, consulting, managed services, and business strategies primarily for large corporate and government clients in the United States.

Tech Mahindra (Americas) Inc, incorporated in 1993, provides IT management consulting, programming support services, and computer consulting to a diverse range of industries, including healthcare.

The merger aims to consolidate these services, resulting in optimised operations, cost efficiency, and a reduction in compliance risks.

The merger of these wholly-owned subsidiaries does not involve any cash consideration or the issuance of new shares. Instead, the investment of TMA in Eventus will be cancelled upon the effective date of the merger.

Both companies’ operations are complementary, and this consolidation is expected to enhance operational synergies, streamline business processes, and bolster Tech Mahindra’s position in the market. The financial performance of the entities for the year ending March 31, 2024, shows Eventus with a turnover of USD 52.50 million and TMA with USD 1,153.28 million, reflecting the scale and scope of the merger’s strategic importance.

On December 11, 2024, Tech Mahindra share price opened at ₹1,765.00, touching the day’s high at ₹1,769.75, as of 10:49 AM on the NSE.

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