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Acquisition of IT companies in India


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Integral service around a transaction
BY : Diego GutiérrezDecember Thu, 2018

We expose the purchase of companies India's most relevant technology companies in 2018. The Asian country has become an emerging economy that offers many and varied business opportunities. In this post we talk about Bygging India Limited, Mswipe Technologies, Embibe and Flipkart.

Dominion buys Bygging's 51%

On 10 December last Global Dominion purchased the 51% from Indian company Bygging India Limited (BIL). The transaction has been valued at EUR 5.1 million, with the option to acquire the whole company within the next five years. In the case of acquiring the remaining 49%, the maximum price for the remaining 49% is may not exceed 5 times average EBITDA of the period elapsed nor be less than the book value. The holders of this percentage will have a put option in the fourth and fifth year.

The Dominion Group is a Basque company dedicated to the provision of technological services and solutions at a global level for the telecommunications, industry and energy sectors. This operation will enable it to enter the Indian market for industry services and solutions and will be the "seed of a platform for international projects optimising operational and manufacturing costs".

They also explained that this operation is part of the model of diversification, decentralisation, digitalisation and growth with financial discipline set out in the strategic plan, with the aim of becoming a global and multi-technical supplier.

Bygging is one of the most powerful industrial solutions providers in the country. In the last audited financial year (31 March 2018) it had a turnover of around EUR 20 million and an EBITDA of EUR 2.3 million. It also has a client base and project portfolio in India that secures its business. for the coming years and this has created interest in Dominion.

 

Fintech Select signs LOI with Mswipe Technologies

Fintech Select announced on 1 November the signing of a Letter of Intent ("LOI") with Mswipe Technologies. Within the basis of the signature is the acquisition of a online payment platform and an e-wallet which will complement and integrate with Fintech Select's existing core platforms.

Fintech Select (Toronto, Canada) offers prepaid card programmes, mobile banking solutions and cryptocurrency technologies. The board of directors has approved the issuance of 6 million common shares of the company at the current market price of 5 cents each to Mswipe.

"We are very excited about this strategic acquisition, as it will allow us to expand our integrated services to include the e-commerce payment, money transfer and cryptocurrency payment transactions through the new platform. In terms of our cryptocurrency services, it will allow us to expand our reach to domestic and international clients," said Fintec Select CEO Mohammad Abuleil.

Mswipe Technologies, on the other hand, enables merchants to facilitate the checkout process through the acceptance of debit and credit cards using mobile phones (running Android, iOS or other notable operating system.) It was founded in 2011 in Mumbai with the aim of serving smaller Indian traderscreating the country's largest financial services platform for SMEs.

180 million in technology education

On 13 April we learned of the investment of Reliance Industries (RIL) of $180 million in the education and technology company Embibe. The acquisition was made with the purchase of a 72.69% stake in Embibe and with an investment that will be spread over three years.

Reliance Industries is controlled by the billionaire Mukesh Ambani and derives most of its revenues from its refining and petrochemical plants. and also operates a large retail chain. In 2016 it launched its Reliance Jio Infocomm to the telecommunications industry.

The startup Embibe is currently India's largest private sector company and is growing its business in India. betting on digital businessThe company has also increased its data-driven telecommunications unit.

The deal for Embibe has potential synergies with Reliance Industries' investments and digital services initiatives. "RIL aims to connect over 1.9 million schools and 58,000 colleges across India with technology," said Akash Ambani, director, Reliance Jio.

Embibe will also use this capital to deepen its research and development in artificial intelligence in educationas well as in business growth and geographic expansion. Its economic status has made it a company to fight against in the sector with other companies such as Toprankers, Testbook.com or MockBank.

 

Walmart buys Flipkart

Walmartthe world's largest retailer, confirmed in early May that it was investing $16 billion in Flipkartacquiring a 77% stake in the Indian company. However, the price at the time of closing was agreed at USD 20.8 billion, a confirmation that we met in mid-August. This investment has become the largest Walmart has ever made in its history, replacing Asda in the UK.

Flipkart gave Walmart a big step forward in its business in Asia by helping it better leverage the region's second largest market after China and one of the economies fastest growing in the world. "India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading the e-commerce transformation in the market," said Doug McMillon, president of Walmart.

Flipkart is the largest online retailer in India. It has 54 million active customers, annual revenues of $2.4 billion and a gross merchandise value of $7.5 billion in 2018. It owns and operates an online shopping website in India, providing books, movies, music, games, mobile phones, software, peripherals, home appliances, kitchen products and more.

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