Washington, March 24: India's leading IT service and consultation firm, Tech Mahindra announced its plans to merge its subsidiaries including 'BORN Group' with parent company 'Tech Mahindra (Americas) Inc'. The merger aims to optimise operating costs, reduce compliance risks, and synergise business operations. The respective companies have approved the consolidation on March 22 (Friday). Tech Mahindra said it also received intimation on March 23 (Saturday). 

Tech Mahindra's BORN Group provides unique brand experiences with services like content creation, creative design, commerce enablement, cloud technology, and more. According to a report by Zee News India, the BORN group is more focused on brand strategy, brand identity exploration, visual design, and other digital and physical products. On the other hand, Tech Mahindra (Americas) or TMA, provides IT management and consulting services such as computing consulting, programming support services, and more. Samsung To Drive Growth With Premiumisation in 2024 in India: Senior VP Raju Pullan.

According to a report by Mint, Tech Mahindra spokesperson said that TMA and BORN are complementary, and their consolidation would benefit business operations, risk compliance and operational cost optimisation. The report noted that there was no involvement of any cash or issue of new shares in the merger process; however, the investment of Tech Mahindra (Americas) in BORN will be cancelled as the merger becomes effective. The report emphasised that the "shareholding pattern" of the company would remain unaffected. Stability AI Founder and CEO Emad Mostaque Resigns From His Role To Purse ‘Decentralised Artificial Intelligence’.

According to the report, Tech Mahindra (Americas), or TMA, had a turnover of $1,201.37 million as of March 31, 2023. At the end of the financial year, the BORN group had witnessed a turnover of about $55.08 million. According to other reports, the appointed date of a plan to merge the TMA and BORN groups is April 1, 2024. 

(The above story first appeared on LatestLY on Mar 24, 2024 05:20 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).