Mumbai : Mahindra group announced it will acquire Italian automotive and industrial design firm Pininfarina for an overall outgo of over 50 million Euros (nearly Rs 370 crore) after months of negotiations.

The acquisition is being carried out through a special purpose vehicle (SPV) and two group firms Tech Mahindra and Mahindra & Mahindra (M&M) will own 60 % and 40 %, respectively, in the Turin-based firm.

“As part of the agreement, Tech Mahindra and M&M will purchase 76.06 % of Pininfarina shares from the current controlling shareholders Pincar srL at a price of Euro 1.1 per share,” Mahindra & Mahindra said in a BSE filing.

Commenting on the acquisition, Mahindra Group Chairman Anand Mahindra said: “Pininfarina will add enormous value to Tech Mahindra’s portfolio of engineering services. But just as important is the fact that the legendary high-end design credentials of Pininfarina will significantly enhance the design capabilities of the entire Mahindra group.”

Given the increasing design sensibilities of today’s consumers, product design will greatly influence customer choice and experience and hence the group’s success, he added. Pininfarina Spa, Chairman Paolo Pininfarina said, “”Tech Mahindra’ global presence and global delivery model will allow us to compete for a larger pie of the business,” he added.

Tech Mahindra CEO and MD CP Gurnani said adding Pininfarina’s legendary design skills to the company’s integrated engineering solutions enables a strong entry into automotive styling, design and development and reinforces body engineering capabilities.

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