India Equity Research | Information Technology © March 15, 2021 Flash Note Emkay Tech Mahindra Your success is our success Refer to important disclosures at the end of this report CMP Target Price Rs 1,003 Rs 1,170 (■) as of (March 15, 2021) 12 months Perigord to augment capabilities in Rating Upside HLS vertical BUY (■) 16.6 % This report is solely produced by Emkay Global. The . Tech Mahindra has agreed to acquire a 70% stake in Ireland-based Perigord Asset following person(s) are responsible for the production of the recommendation: Holdings (Perigord), a digital workflow and artwork, labelling and BPO services firm, for a cash consideration of EUR21mn (~1.5x EV/Sales on TTM basis). Tech Mahindra will Dipesh Mehta acquire the remaining 30% stake in the next four years at valuation linked to the financial
[email protected] +91 22 6612 1253 performance of Perigord. Monit Vyas . Deal rationale: This acquisition will strengthen Tech Mahindra’s platform-led BPaaS
[email protected] offerings, expand its global footprint and bolster its capabilities in the digital supply chain +91 22 6624 2434 in the global pharmaceutical, healthcare and life science (HLS) market. It will strengthen Tech Mahindra’s position as a leading digital transformation enabler in the artwork and packaging services space with an integrated platform and services portfolio. Additionally, Tech Mahindra will leverage Perigord’s expertise and offerings to extend capabilities toward delivering efficiency and automation levers across sectors, including consumer- packaged goods, medical devices and over-the-counter products. The acquisition is a part of Tech Mahindra’s growth plan to expand presence in key markets in Ireland, Germany, USA, and India, with enhanced global delivery capabilities.