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IT major Tech Mahindra, which acquired four companies in calendar year 2021, is open to further acquisitions to fill in the white space and add value to the company.
“We always evaluate and look at our acquisitions on an individual merit, and it just happened that a few of the acquisitions came in together. From a size perspective, we remain consistent that these are filling in white spaces, and from a revenue-size perspective these are all in the $25-50 million range, and this would be the sweet spot when we look at acquisitions,” Vivek Agarwal, President–BFSI, Healthcare and Lifesciences and Corporate Development, told BusinessLine in an interaction.
“We don’t have a specific objective on how many we want to acquire. We remain open...,” he added.
On Monday, Tech Mahindra entered into an agreement to acquire US-headquartered consulting and technology service company Eventus Solutions Group for $44 million, which includes earnout payments. Since January 2021, Tech Mahindra acquired four firms (including Eventus Solutions), the others being Payments Technology Services, Perigord Asset Holdings and DigitalOnUS.
Also Read: Tech Mahindra to acquire US firm Eventus Solutions for $44 million
“We look at acquisitions if it adds to our portfolio or gives access to customers,” Tech Mahindra Chief Financial Officer Milind Kulkarni said.
The company is not seeing any supply chain disruption from the second wave of the pandemic as all its employees are geared to ‘work from anywhere’ culture. The company’s unplanned leave (absenteeism) from the major cities impacted by Covid-19 – Mumbai, Delhi and Pune – was about 1-1.5 per cent.
“We aren’t seeing any significant impact of the Covid-19 and supply-side constraints are not something we are bothered at this point in time, with most of the economies are bouncing back and demand for technology is still high,” Agarwal said
While 5G will have a number of use cases in enterprise segment such as manufacturing and healthcare, the adoption is a little slow.
“We do see a little softness there. Telecom is a dominant sector for us, and we are continuously on a capability building,” Agarwal added.
On Monday, the IT major recorded a consolidated net profit of ₹1,081.4 crore for the fourth quarter ended March 31, 2021, a 34.6 per cent rise from ₹803.9 crore recorded during the corresponding period a year ago.
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