Hyderabad: Technology services provider Tech Mahindra Ltd (TechM) on Wednesday said it had acquired UK-based digital transformation firm The BIO Agency Ltd, strengthening an important focus area for the company.
The acquisition will augment Tech Mahindra’s digital portfolio, enabling it to offer digital strategy, service design and customer experience services. The company said in a statement the acquisition will allow it to “engage with its clients at the start of the journey” and help design customer experience for their businesses.
The size and terms of the transaction were not disclosed.Press Trust of India reported the enterprise value of the deal is £45 million.
“Acquisition of BIO enables TechM to enter the niche but high growth digital agency space that was missing in TechM’s offerings portfolio,” Sandeep Gogia, associate director of investment banking firm Equirus Capital said in a note. “BIO will present a significant opportunity for TechM to cross-sell BIO’s differentiated offerings to TechM’s large, global client base and thereby derive non-linear synergies from this acquisition.”
The BIO Agency specializes in digital transformation and innovation, helping organizations change the way they engage with their customers. It services brands across financial services, retail, property, travel, and technology sectors.
“The BIO Agency and Tech Mahindra will create one of the world’s leading innovation practices. A combination of BIO’s visionary thinking and delivery with Tech Mahindra’s IT to DT (Digital Transformation) strategy will enable and create digital services, that get industries ready beyond just technology transformation, but a larger integrated customer experience”, C.P. Gurnani, managing director and chief executive officer of Tech Mahindra, said in the statement.
The BIO Agency offers digital strategy, service design, digital retail, connected products, product innovation and e-commerce solutions, according to its website.
The acquisition will help the company make sizeable inroads into the Fortune 100/500 telecommunications and enterprise clients of Tech Mahindra, especially in Europe and the US. The company will continue to invest in its employees and in developing proprietary solutions.
“We are looking forward to the next stage of BIO’s journey. With a partner like Tech Mahindra, we plan to further scale our offering continuing to help clients change the way they engage with their customers. I am thrilled by the new possibilities of what our two companies will do together,” Peter Veash, CEO of The BIO Agency said.