Tech Mahindra acquires UK-based BIO Agency

The Dollar Business Bureau

Tech Mahindra announced Wednesday it has acquired UK-based BIO Agency in an all-cash deal for an enterprise value of up to £45 million. 

“The consideration is the enterprise value of £40 million pounds plus surplus cash not exceeding £5 million at the completion date. The payment of £22 million and the surplus cash will be made upfront and the balance as deferred payments based on company performance,” said Tech Mahindra in a statement.

Tech Mahindra would acquire 100% shares in BIO. The transaction is expected to close in July 2016.

 “This acquisition brings forth a synergy that will bring in more clients for BIO globally (especially in Europe and the US), scaling their offering geographically and enabling new services and deeper Digital Change,” it said.

This acquisition will help the Indian tech giant to strengthen its engagements with the clients and help design the experience of the customers for its business.

Incorporated in April 2006, BIO has a revenue of £12.5 million for the financial year 2015-16. BIO brands caters to retail, travel, property, financial services and technology sectors.

“The BIO management will be awarded consideration based on the revenue they bring into Tech Mahindra for the next three years,” the company said.

“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 DT (digital transformation) strategy will enable and create digital services, that get industries ready beyond just technology transformation, but a larger integrated customer experience,” said C P Gurnani, MD & CEO of Tech Mahindra.

Tech Mahindra has been on an acquisition spree lately. Recently, it had acquired Target Group for around 120 million pounds.