Tech Mahindra To Acquire Thirdware For $42 Mn

SUMMARY

It is going to be an all-cash deal

Thirdware creates enterprise solutions with a focus on the automotive industry

Tech Mahindra might look to integrate the Thirdware products with its metaverse offering, the TechMVerse

Indian IT giant Tech Mahindra has announced that it will acquire Mumbai-based Thirdware, an enterprise applications startup. According to the regulatory filings, Tech Mahindra will acquire Thirdware for $42 Mn in an all-cash deal.

An exchange filing accessed by Inc42 reads that the company’s latest acquisition will “bolster Tech Mahindra’s digital solutions and services in automotive consulting, design, development, and implementation in areas like ERP (Enterprise Resource Planning), EPM (Enterprise Performance Management), RPA (Robotic Process Automation), and IIoT (Industrial Internet of Things). Thirdware’s capability to provide end-to-end implementations and global rollouts of ERP solutions will give Tech Mahindra an edge in the manufacturing space.”

According to the company, the $42 Mn price tag also includes earnouts.

“Thirdware’s capability to provide end-to-end implementations and global rollouts of ERP solutions will give Tech Mahindra an edge in the manufacturing space,” the company said.

Founded in 1995 by Bhavesh Shah, Thirdware is a Mumbai-based player in enterprise solutions in the areas of ERP, BIA, Cloud, and business technologies.

The startup offers consulting, design, implementation, and support of enterprise applications services with a focus on the automotive industry.

Thirdware Solutions has more than 850 employees. It closed the financial year 2020-21 with a revenue of INR 210.6 Cr and recorded a turnover of INR 226.5 Cr in the first 10 months of the current fiscal year.

The homegrown IT giant expects to complete the acquisition by May this year.

It seems as though Tech Mahindra wants to focus on the automotive industry; Thirdware did create products focused on the automotive sector.

The acquisition means that not only it has shifted its focus on consolidating the market, but might also integrate these products into its metaverse, the TechMVerse.

On 28th February, Tech Mahindra announced its metaverse variant, the TechMVerse, which will see the electronics and telecom gear maker utilise its 5G capabilities to deliver immersive experiences for its customers.

With Thirdware’s product portfolio coming in under the larger Tech Mahindra portfolio, it would be interesting to see what the Indian IT giant decides to do with it.