Prabhudas Lilladher's report on Tech Mahindra
"Tech Mahindra (TechM) has signed a definitive agreement to acquire SOFGEN Holdings Limited (SOFGEN). The transaction is expected to close by March 2015, subject to regulatory approvals. SOFGEN is a niche consultancy group with specialization in Private, Commercial and Retail Banking. Founded in 1999, SOFGEN's has 20 offices in 4 continents with strong presence in Asia Pacific, Latin America and Africa. The portfolio of service offerings are Multi‐Jurisdictional Tax Reporting, Liquidity Risk Analysis, Microfinance and additional core banking platforms."
"SOFGEN has 450+ employees with 20+ Tier 1 client relationships. Delivering solutions “in and around” core banking the company has the 2nd largest pool of Avaloq consultants (Wealth Management Product) and is Temenos’ (Core Banking Software) most prolific partner. TechM will acquire SOFGEN for sub‐$30mn (1/3rd as earn‐outs paid over next 2 years depending on Revenue and Margin growth) in all cash deal and it will add revenue of $45mn with EBITDA margin of 8‐9% to TechM’s P&L."
"We see this acquisition would strengthen presence of TechM in BFSI with new clients’ relationship. Moreover, new logos addition would provide cross selling opportunities. We retain our BUY rating with target price of Rs 3,050", says Prabhudas Lilladher research report.
For all recommendations, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
