Tech Mahindra acquires 17.28% in UKs Servista

Written by Corporate Bureau | Mumbai, Aug 28 | Updated: Aug 29 2008, 05:42am hrs
Indian software firm, Tech Mahindra on Thursday said that it would acquire a stake of 17.28% in European systems integrator, Servista for an undisclosed amount and would be the latters delivery arm for a period of three years. Private equity firms HarbourVest Partners and Arts Alliance hold major stake of the privately held company, Servista.

It is headquartered in London and provides managed IT services on an offshore basis with core offerings in operating and business systems such as CRM, billing, operational workflow, IT systems transformation and testing.

Tech Mahindra shares fell 5.22% on the BSE on Thursday to close at Rs 736.50, owing to media reports saying that IT and telecom major BT Group is mulling sale of its 31% stake in the firm for an estimated Rs 8,300 crore.

As a part of the deal, Tech Mahindra will also assist Servista in securing more large scale technology offshoring business in Europe, the firm said in a statement, adding that it will also nominate a member on Servistas board. Atul Kunwar, chief business development officer, told FE, We have been working with Servista for three years now and its consulting and sales model will help Tech Mahindra to have exposure to continental Europe where Servista has a strong presence. Servista has presence in France, Italy, Spain, Germany and UK. Kumar adds that the firm wants to concentrate on the telecom vertical in these geographies and Servistas expertise in customer relationship management and billing will be helpful.