Tech Mahindra to Acquire Majority Stake in Canadian Firm Avant for ₹171 Crore
Tech Mahindra Acquires 85% Stake in Canada-Based Avant for CAD 28 Million
Tech Mahindra, a leading IT company, has signed an agreement to acquire an 85% stake in Canada-based Alluri Technologies Inc (Avant) for CAD 28 million (approximately Rs 171 crore). The acquisition is expected to further strengthen Tech Mahindra's service capabilities and deepen its industry expertise within the BFSI (Banking, Financial Services, and Insurance) vertical.
As per the agreement, Tech Mahindra will acquire the remaining 15% equity shares of Avant after three years at a predetermined pricing formula. The company plans to acquire 85% shareholding of Avant by July 31, 2026, and the balance 15% will be acquired by June 30, 2029.
The acquisition is expected to enhance Tech Mahindra's offerings across key areas, including real-time rail capabilities, wire modernisation, core payments cloud transformation, wealth management platforms, identity and access management solutions across North America, while creating new opportunities in open banking, commercial lending, regulatory compliance, and fraud and financial crime.
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| Area | Current Strength | Post-Acquisition Strength |
|---|---|---|
| Real-time rail capabilities | Limited | Enhanced |
| Wire modernisation | Limited | Enhanced |
| Core payments cloud transformation | Limited | Enhanced |
| Wealth management platforms | Limited | Enhanced |
| Identity and access management solutions | Limited | Enhanced |
| Open banking | Limited | New opportunity |
| Commercial lending | Limited | New opportunity |
| Regulatory compliance | Limited | New opportunity |
| Fraud and financial crime | Limited | New opportunity |
The strategic alignment of the two companies is expected to bring experienced sector talent and established client relationships, enabling faster and more scalable delivery across key markets. Tech Mahindra's BFSI and Public Sector Head – Americas, Roshan Shetty, said that the acquisition of Avant will strengthen the company's ability to serve financial institutions at a time when the sector is balancing growth with rapid digital change.
"We will help clients modernise core payment & wealth systems, improve customer engagement and respond faster to evolving market and regulatory demands," said Shetty. The acquisition is expected to create new opportunities for Tech Mahindra to deliver more secure, data-driven customer experiences to financial institutions.
Investor Takeaway
Tech Mahindra's acquisition of Avant is expected to strengthen its service capabilities and deepen its industry expertise within the BFSI vertical.
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