Tech Mahindra to acquire Canada’s Avant to boost BFSI capabilities

Indian IT major Tech Mahindra on Thursday said it will acquire an 85% stake in Avant Techno Solutions (Alluri Technologies Inc) for 28 million Canadian dollars (about ₹171 crore), as part of a multi-tranche deal aimed at strengthening its banking, financial services and insurance (BFSI) vertical in North America.

The acquisition, to be executed through its wholly owned step-down subsidiary Tech Mahindra Consulting Group Inc (TMCG), is expected to be completed by July 31, 2026. The remaining 15% stake will be acquired by June 30, 2029, at a pre-agreed pricing formula, according to a regulatory filing.

Founded in 2017, Avant specialises in payments modernisation and wealth platforms, with capabilities spanning real-time payment rails, ISO 20022 migration, wire modernisation and cloud transformation of core banking systems. It also brings expertise in identity and access management.

Tech Mahindra said the acquisition will enhance its offerings across open banking, commercial lending, regulatory compliance, fraud prevention and financial crime, while adding domain talent and established client relationships in the US and Canada.

“The acquisition of Avant will strengthen our ability to serve financial institutions at a time when the sector is balancing growth with rapid digital change,” said Roshan Shetty, BFSI and public sector head for the Americas at Tech Mahindra.

Srinivasa Varma Alluri, CEO of Avant, said the partnership would combine specialised domain expertise with Tech Mahindra’s global delivery scale to accelerate modernisation for financial institutions.

The deal comes amid a broader wave of capability-led acquisitions across the Indian IT services sector. Larger peers such as Tata Consultancy Services and Infosys have been doubling down on niche buys and partnerships in areas such as cloud, engineering services and AI, while Wipro and HCLTech have also pursued targeted acquisitions to strengthen domain capabilities and expand presence in key markets like North America.

The acquisition also follows Tech Mahindra’s latest financial performance, where it reported consolidated revenue of ₹15,076 crore for the March 2026 quarter, up 4.7% sequentially and 12.6% year-on-year, while net profit rose to ₹1,354 crore, up about 16% year-on-year. For the full fiscal year FY26, the company posted revenue of ₹56,815 crore and profit after tax of ₹4,811 crore, reflecting growth of 7.2% and 13.2% respectively, alongside improving margins and a stronger deal pipeline.