Tech Mahindra has announced a strategic move to merge two of its wholly-owned subsidiaries. The Board of Directors approved the plan on February 17, 2025, marking a significant step towards optimizing operational efficiency and reducing compliance risks.
Key Details of the Merger
Entities Involved:
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Tech Mahindra Cerium Systems Inc. (TMCS) – Transferor Company
Incorporated in the USA in 2014, TMCS is a wholly-owned subsidiary of Tech Mahindra. It provides design services in the semiconductor industry and embedded software services, but is currently a non-operating entity. The company recorded a turnover of USD 2.7 million for the financial year ending March 31, 2024. -
Tech Mahindra (Americas) Inc. (TMA) – Transferee Company
Established in 1993, TMA is a wholly-owned material subsidiary of Tech Mahindra. It specializes in computer consulting, programming support services, and IT management & consulting services, catering to various industries, including healthcare. TMA reported a turnover of USD 1,153.28 million for the financial year ending March 31, 2024.
Rationale Behind the Merger
The merger is aimed at:
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Consolidating entities to improve efficiency.
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Optimizing operational costs by streamlining business functions.
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Reducing compliance risk associated with maintaining multiple legal entities.
Financial Considerations
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No cash consideration or issuance of new shares will take place, as both companies are wholly-owned subsidiaries.
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Tech Mahindra’s investment in TMCS will be cancelled once the merger is effective.
