MERGERS AND ACQUITIONS - REVIEWS

In 2021, the economic optimism and availability of large capital stimulated domestic mergers and acquisitions (M&A) led by companies that liquidated non-core assets to streamline corporate structure and use cash to purchase assets, a PWC report showed. The major deals in the IT sector last year included Wipro’s Capco acquisition for USD 1.5 billion and Byju’s Great Learning (USD 600 million) and Epic (USD 500 million) purchases. The trend is likely to continue in 2022.

Reliance’s stake in Addverb

Reliance Industries Limited spent USD 132 million to pick up a 54% stake in Addverb Technologies, an Indian robotics startup. The Noida-based startup focuses on building automation and robotics solutions for warehouses and factories. Reliance has been already using Addverb’s robotic conveyors, pick-by-voice software, and semi-automated systems in its warehouses. Addverb churns out around 10,000 robots in a calendar year, including mobile robots, sorting robots, pallets shuttle and carton shuttle. And 80% of the startup’s revenue comes from the domestic market.

The robotics startup plans to use Reliance’s resources to achieve its goal of becoming a billion-dollar company in the next five years by targeting the global market.

HCL’s majority stake in GBS & Starschema acquisition

HCL Technologies has acquired a majority stake (51%) in German IT consulting firm Gesellschaft fr Banksysteme GmbH (GBS). The remaining stake (49%) is with the largest German cooperative primary bank Deutsche Apotheker- und rztebank eG (apoBank).

Additionally, HCL has agreed to buy the Budapest-based company Starschema in a deal worth USD 42.5 million to strengthen its data engineering services and build a stronghold in Central and Eastern Europe. The deal is subject to regulatory clearance from the Hungarian Ministry of Innovation and Technology and is expected to be completed by March 2022. Starschema, founded in 2006, offers consulting, technology, and managed services in data engineering.

The deal will enable HCL to provide data engineering consulting and near-shore access to digital engineering services to a bigger pool of clients. The main idea behind the acquisition is to utilise Starschema’s data-focused expertise with HCL’s industry presence for a data-driven transformation.

Infosys buys Oddity

Infosys has signed a definitive agreement to acquire oddity, a German digital marketing, experience, and commerce agency. The move will reinforce Infosys’ creative, branding and experience design capabilities and demonstrates its continued commitment to co-create with clients and help them navigate their digital transformation journey.

“Using oddity’s digital commerce, marketing knowledge, and metaverse-ready set-up, it easily complements Infosys’ prowess in technological transformation,” said Ravi Kumar S, Infosys President, in a statement.

oddity has a comprehensive service portfolio comprising digital-first brand management and communication, in-house production, including virtual and augmented reality, experience design and e-commerce services across Europe and China. The acquisition will power Infosys’ metaverse play.

Tech Mahindra buys Thirdware, picks stake in Geomatic.AI

Tech Mahindra has acquired Mumbai-based enterprise applications startup Thirdware in an all-cash deal worth USD 42 million.

Thirdware, founded in 1995 by Bhavesh Shah, offers solutions and services in the consulting, design, development, implementation and support of packaged solutions and covers areas like Robotic Process Automation (RPA), Enterprise Resource Planning (ERP) and Enterprise Performance Management (EPM) Thirdware delivers cutting edge business solutions and services to over 300 customers across the globe which includes Ford Motor Company, Pfizer, United Nations Organizations, Visteon, etc.

Thirdware’s capability to provide end-to-end implementations and global rollouts of ERP solutions will give Tech Mahindra an edge in the manufacturing space.

Tech Mahindra has bought 80 percent stake in Geomatic.AI through its Singapore-based subsidiary. “As part of this deal, Tech Mahindra will have 80 percent shareholding in Geomatic.AI for consideration of Australian dollar 6 million. Ausnet will have 20 percent shareholding and transfer digital workforce, intellectual property, assets and client contracts to the newly formed entity,” the company said in a regulatory filing.

Geomatic.AI will continue its focus on digital platforms-led non-linear growth in partnership with AusNet Services, an Australian energy and utility distributor. The company’s highly differentiated IP will allow Tech Mahindra to offer Drone Technologies, Digital Twins, AI-led services to linear asset-intensive industries such as energy and utilities, transportation, oil and gas.