Indian IT services firm Tech Mahindra will acquire US-based design consultancy firm Mad*Pow.
The acquisition, which is expected to close by July 31, will further Tech Mahindra’s capabilities in customer experience and digital transformation, the company said in a statement today.
“Mad*Pow’s acquisition is in sync with Tech Mahindra’s global digital charter,” C P Gurnani, MD and CEO of Tech Mahindra, said. “With this collaboration, our digital footprint will take a deeper root not just in the US, but in the wider ecosystem world over. I welcome the Mad*Pow team into the Tech Mahindra family, and I am confident that together we will achieve greater success."
Tech Mahindra, which reported its first quarter results for FY20, had reported 37% year-on-year growth in digital revenue, which was currently 36% of total revenue.
While 65% of Mad*Pow shares will be acquired at the closing of the transaction, the balance shares will be bought over the next three years depending on financial performance, according to the terms of the deal.
Mad*Pow, which has offices in Boston and Portsmouth, provides user-centred design services to clients across the United States. The company, which was founded in 2000, has around 70 employees including researchers, designers, strategists, creative technologists, psychologists and creative thinkers.
Mad*Pow’s revenue for the year ended December 31, 2018 was $14.7 million, and the enterprise valuation of the company stands at $25.3 million.