The Indian IT giant, Tech Mahindra will acquire 18.1 per cent stakes in Vitaran Electronics and Infotek Software and Systems (ISS) for an amount of INR 13 crore, as reported by the Indian daily news, Business World.
"...the Investment Committee of the Board of Directors of the company has approved the proposal to acquire 18.1 per cent equity shares each of ISS and Vitaran Electronics," apprised the IT company, Tech Mahindra, in a regulatory filing.
Further, the company mentioned the acquisition of stakes will be monetized in cash.
Through this deal, the IT giant, Tech Mahindra will be benefited as the acquiring companies have influence in radio-frequency identification (RFID) segment and thus, facilitate Tech Mahindra to create a footmark in tracking, asset monitoring and automated billing solutions space, said the IT company.
More so, this investment will be beneficial for Tech Mahindras other subsidiary relating to solution portfolio to provide smart city projects, as stated in the regulatory filing.
The respective revenue of Vitaran and ISS till September 30, 2018, was INR 29.2 crore and INR 12.6 crore.
ISS was founded in 2000 and trades in RFID products as well as caters software maintenance services and supporting installation. Conversely, Vitaran was initiated in 2006 and also trades in RFID products, which are mainly access control systems.