Tech Mahindra Board approves acquisition of CJS Solutions

The Board of Indian IT giant Tech Mahindra, has approved the acquisition of CJS Solutions Group. The enterprise value of the company is fixed at USD 110 million. Tech Mahindra will pay USD 89.5 million upfront for around 84.7 percent of CJS' stake. It will require the remainder of the stake over the next three years. "It will be acquired with a combination of cash and borrowings. But it will mostly be funded via internal accruals," said the CFO of the company Milind Kulkarni.The margins of CJS are in high single digit. This acquisition will be margin accretive for the company, said Kulkarni. The CJS transaction is expected to close by April 2017."If CJS achieves certain milestones, then contingent consideration would be at USD 130.5 million," he added.Watch video for more.