Tech Mahindra’s playful divestment of its 30% stake in Avion Networks for $50,000 – a strategic move to optimize compliance costs and risks while bidding adieu to an unprofitable venture. Discover the lighthearted side of business deals.
In a lighthearted twist in the world of business deals, Tech Mahindra (Americas) has announced its plan to part ways with a 30 percent stake in Avion Networks Inc. The buyer, Kanchana Raman, the promoter of Avion Networks, is set to become the new captain of the ship. The sale is expected to be sealed by October 31, 2023, adding a touch of suspense to the transaction.
Tech Mahindra (Americas) Inc., a subsidiary of the renowned Tech Mahindra Limited, currently holds this share capital of Avion Networks Inc. With this divestment, they’re saying goodbye to a significant piece of the pie.
What’s the reason behind this friendly breakup, you ask? According to the IT and software services provider, Avion Networks didn’t quite contribute as much as they had hoped in terms of turnover or net worth to Tech Mahindra’s consolidated numbers. As a result, they’ve decided to say farewell to their stake in Avion Networks. It’s a strategic move to keep things lean and mean, reducing compliance costs and associated risks.
If you’re wondering whether there’s any family drama in this story, rest assured that the buyers are not part of the promoter or promoter group of Tech Mahindra Limited. It’s a clean break, like two friends parting ways amicably.
A little backstory: Tech Mahindra and Avion Systems had teamed up back in 2015 to offer a combination of network design and software engineering services. This venture focused on deploying and managing mobile networks and transforming them into cloud-enabled, virtual, and open systems software-driven networks. It was a promising partnership that has now taken an unexpected twist.
And let’s not forget, this isn’t the first time Tech Mahindra has decided to change its business relationship status. Earlier this year, in June, they announced the divestment of a 49 percent stake in SARL Djazatech. It seems like Tech Mahindra is ready to explore new opportunities and make room for exciting adventures.
So, as Tech Mahindra (Americas) says goodbye to Avion Networks, they’re opening the door to new possibilities, keeping their business endeavors as playful as ever.