November 6, 2019
The BORN Group currently runs offices in New York, London, Hong Kong, Singapore, and India, and employs around 1,100 people
Tech Mahindra will buy BORN’s India unit, while Tech Mahindra Pte, the firm’s Singapore arm, will take over other entities
Tech Mahindra has acquired US’ Mad*Pow, Canada’s Objectwise Consulting Group, and The Netherlands' Dynacommerce this year
In 2019, OYO Hotels and Homes, IBS Software, Wipro Ltd, HCL Technologies, Infosys and others have acquired companies abroad
Joining a growing list of Indian companies to have acquired or invested in foreign companies in recent times, Indian IT services firm Tech Mahindra Ltd has acquired BORN Group, a New York-based digital content and production agency, for US$ 95 million.
The BORN Group has offices in New York, London, Hong Kong, Singapore, and India. It employs over 1,100 people, and its services include consulting, content creation, and digital and social marketing, among others. It boasts of clients such as Google, Tata, Red Bull, and TAG Heuer. The firm is owned by private equity firm True North and Zodius Capital. BORN recorded a revenue of US$ 50 million in 2018, up from US$ 39 million and US$ 36 million in the preceding two years.
Expecting to close the deal by November 15, Tech Mahindra will buy BORN’s India unit, while Tech Mahindra Pte, the firm’s Singapore arm, will take over other entities. In addition to the enterprise value of US 95 million, the deal also includes a future payout of US$25 million linked to the achievement of financial targets for the year.
Earlier this year, Tech Mahindra had acquired about 65 per cent in US-based strategic design consultancy firm Mad*Pow for US$70 million. Apart from this, it had also acquired Canada-based Objectwise Consulting Group Inc in June, and Netherlands-based IT firm Dynacommerce Holding BV in February.
In 2019 alone, Indian companies like Wipro Consumer Care, OYO Hotels and Homes, IBS Software, Wipro Ltd, HCL Technologies, Infosys, and many others, have invested in or acquired companies across various sectors and countries, including the Philippines, Netherlands, Canada, USA, and Romania. This is indicative of the burgeoning Indian tech sector and its growing digital capabilities. Such agreements have helped expand the international market of Indian enterprises.