Tech Mahindra sells stake in Terra Payment Services

Tech Mahindra has sold its stake in Terra Payment Services (Netherlands), a step down subsidiary, in a slump sale.

The Pune-based company, which owned Terra Payment Services through its Comviva Technologies subsidiary, sold its stake for an upfront payment of $9 million to venture capital and growth equity firm Prime V Holding 2 EV  and French partnership firm Partech Africa.

The company also made a bonus payout of upto $13.8 million, which is subject to meeting certain conditions.

The information technology services firm said in a Bombay Stock Exchange (BSE) filing that the companies agreed on the transaction in September last year, and the transaction was completed on March 3.

It cited Comviva’s intent to exit the mobile interoperability platform business as the reason for the sale.

The company posted a 6.4% sequential growth in its consolidated revenue for the quarter ended December 31 and a 2% growth in its net profit.

Recently, the company merged Tech Mahindra Growth Factories and Dynacommerce India with itself. A filing with the BSE said that the National Company Law Tribunal (NCLT) sanctioned the scheme of the merger by the absorption of Tech Mahindra Growth Factories and Dynacommerce on January 31 and February 28, respectively.