Tech Mahindra on Tuesday announced the approval of the merger plan between its wholly-owned subsidiaries, MadPow Media Solutions LLC (MadPow) and Born Group Inc. (Born), on October 30, 2023, the company announced through an exchange filing.
This strategic move aims to consolidate their business operations, optimize operational costs, and reduce compliance risks, leveraging the complementary strengths of both entities.
About MadPow Media Solutions LLC and Born Group Inc.
MadPow Media Solutions LLC, established in 2005, is a consulting business specializing in providing strategic user-centered design services and digital solutions to a diverse client base across various industries in the USA. In contrast, Born Group Inc., incorporated in 2011, is the largest independent, integrated agency for strategy, creative content, and commerce offerings with strong technology capabilities in the USA. As of the year ended March 31, 2023, MadPow reported a turnover of USD 12.10 million, while Born's turnover stood at USD 55.08 million.
The merger is considered a related party transaction as both Mad*Pow and Born are wholly owned step-down subsidiaries of Tech Mahindra Limited. However, it is important to note that this transaction has been conducted at "arm's length" to ensure fairness and transparency.
As a result of this merger, there will be no issuance of new shares as both Mad*Pow and Born are already wholly owned by Tech Mahindra (Americas) Inc. The integration of these two companies is expected to bring about synergies in their business operations, streamlining their activities and enhancing their ability to serve a diverse clientele effectively.
Tech Mahindra shares
The shares of Tech Mahindra on Tuesday at 11:47 am IST were at Rs 1,124.10, down by 0.25 percent.