Tech Mahindra acquires 70% stake in Dublin-based Perigord for $25.06 million

Mumbai-based Tech Mahindra has announced the acquisition of 70% stake in Dublin-based digital workflow and artwork, labelling and BPO services firm, Perigord for $25.06 million (€21 million).

According to the IT firm’s filing on the NSE, this amount will be paid upfront and the remaining 30% shares will be acquired over the next four years at a valuation linked to financial performance of the company.

Tech Mahindra will acquire the Indian subsidiary of Perigord, Perigord Data Solutions India and Perigord Premedia (India). Mahindra Engineering Services (Europe) will acquire the other legal entities of Perigord.

The full cash transaction is expected to be closed by March 19, 2021. Perigord, which was incorporated in 2015, has a turnover of $23.27 million (€19.5 million) as of calendar year 2020. The announcement was well received by the market, making Tech Mahindra’s share price jump 1.7% to Rs 1021.95 at midday, from Rs 1004 at the opening of the day.

Talking about the acquisition, Vivek Agarwal, president BFSI, HLS and Corporate Development, Tech Mahindra, said, “Healthcare & lifesciences is a key vertical for Tech Mahindra and this acquisition will expand our footprint globally in these domains. Perigord’s disruptive proprietary platform and expertise in the artwork space and life sciences industry will add significant value to our offerings and capabilities.”

Alan Leamy, chief executive officer, Perigord Asset, stated, “both companies’ future ambitions and desires to digitally transform the world of pharmaceutical packaging services will deliver long-term innovative solutions to our clients that will future proof their needs over the next ten years.”

Perigord specialises in packaging supply chain solutions to the life sciences industry. Commenting on the move, DD Mishra, senior director analyst, Gartner, said, “This is a strategic move. Currently, Tech Mahindra’s revenue verticals are skewed towards BFSI, telecom, media & entertainment. The acquisition will boost healthcare & lifesciences business vertical and create balance.”

“Further, the recent pandemic has accelerated the demand for healthcare and digital solutions related to it. We can expect Perigord to position Tech Mahindra as a leader in the healthcare & lifesciences vertical in Europe, Americas as well as Asia-Pacific markets, enabling customised solutions for the respective markets,” he added.

According to Mishra, the immediate challenge and the focus of the market will be on how well Tech Mahindra executes the acquisition, from both business as well as cultural points of view.