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Tech Mahindra Capital/Financing Update 2021

Dec 3, 2021

35662_rns_2021-12-03_7d13f5fe-b1c1-4e9d-91ca-b8d01328c4f6.pdf

Capital/Financing Update

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Tech Mahindra Limited Sharda Centre, Off Karve Road Pune 411004, Maharashtra, India

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Tel: +91 20 6601 8100 Fax: +91 20 2542 4466 techmahindra.com [email protected] Registered Office: Gateway Building, Apollo Bunder Mumbai 400 001, India

CIN: L64200MH1986PLC041370

3[rd] December, 2021

To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5[th] floor, Dalal Street, Plot No. – C/1, G Block, MUMBAI – 400 001 Bandra-Kurla Complex, Bandra (E) Scrip Code : 532755 MUMBAI – 400 051 NSE Symbol : TECHM

Sub: Approval of proposal for acquisition of 100% stake in Activus Connect LLC and Activus Connect PR LLC

Dear Sir/Madam,

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform that the Company through its wholly owned subsidiary viz., Tech Mahindra (Americas) Inc. approved the proposal to acquire 100% equity shares in Activus Connect LLC and Activus Connect PR LLC (together called as Project Activus or Target).

In this regard, please find enclosed herewith, Disclosure containing the details pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. CIR/CFD/CMD/4/2015 dated 9[th] September, 2015 as ‘Annexure I’. A press release being released in this context is enclosed.

This is for your information and record.

Please acknowledge receipt of the same.

Thanking you,

For Tech Mahindra Limited

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Anil Khatri Company Secretary

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Encl.: As stated above

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Tech Mahindra Limited Sharda Centre, Off Karve Road Pune 411004, Maharashtra, India

Tel: +91 20 6601 8100 Fax: +91 20 2542 4466 techmahindra.com [email protected] Registered Office: Gateway Building, Apollo Bunder Mumbai 400 001, India

CIN: L64200MH1986PLC041370

Annexure I

Sr.
No.
Items for Disclosure Description
1 Name of the target entity, details in brief
such as size, turnover etc.;
The target entity is Activus Connect LLC and
Activus Connect PR LLC (together called as
Project Activus or Target). The Target is
headquartered in Orlando, Florida, USA and has
more than 1750 employees. For the financial year
ended 31stDecember, 2020, the Company had
revenue of USD 17 million.
2 Whether the acquisition would fall
within related party transaction(s) and
whether the promoter/ promoter group/
group companies have any interest in the
entity being acquired? If yes, nature of
interest and details thereof and whether
the same is done at “arms length”;
No
3 Industry to which the entity being
acquired belongs;
IT Services
4 Objects and effects of acquisition
(including but not limited to, disclosure
of reasons for acquisition of target entity,
if its business is outside the main line of
business of the listed entity);
The acquisition will bolster Tech Mahindra’s
capability in the work-at-home Customer
Experience Management (CXM) space,by
employing Target’s unique delivery model and
disruptive platform called SmartVirtual.
5 Brief details of any governmental or
regulatory approvals required for the
acquisition;
None
6 Indicative time period for completion of
the acquisition;
Immediate closing
7 Nature of consideration - whether cash
consideration or share swap and details
of the same;
Cash
8 Cost of acquisition or the price at which
the shares are acquired;
Tech Mahindra will pay total consideration of up
to USD 62 million includingearnouts.
9 Percentage of shareholding / control
acquired and / or number of shares
acquired;
100%

Tech Mahindra Limited Sharda Centre, Off Karve Road Pune 411004, Maharashtra, India

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Tel: +91 20 6601 8100 Fax: +91 20 2542 4466

techmahindra.com [email protected] Registered Office: Gateway Building, Apollo Bunder Mumbai 400 001, India

CIN: L64200MH1986PLC041370

10 Brief background about the entity Target is a remote customer experience and acquired in terms of products/line of customer care solutions provider to customers in business acquired, date of incorporation, the USA. While Activus Connect LLC was history of last 3 years turnover, country incorporated in 2018, Activus Connect PR LLC in which the acquired entity has presence was incorporated in 2020. Last 3 years total and any other significant information (in turnover for the two entities is as follows: - brief); CY20: USD 17 million CY19: USD 0.1 million CY18: N.A.

The CY21 turnover, for the first 6 months starting 1[st] January, 2021 to 30[th] June, 2021 is at USD 21.8 million.

For Tech Mahindra Limited

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Anil Khatri Company Secretary

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Tech Mahindra Acquires 100% stake in Activus Connect, a Leading Provider of Work at Home Customer Experience Management Solutions

Acquisition to bolster Tech Mahindra’s capabilities in emerging workplace solutions

New Delhi – 3[rd] December, 2021: Tech Mahindra, a leading provider of digital transformation, consulting, and business re-engineering services and solutions, today announced that it has acquired a 100% stake in Activus Connect, a leading provider of work at home customer experience management solutions. The acquisition will bolster Tech Mahindra’s capabilities in emerging workplace solutions and strengthen end-to-end CX portfolio.

The acquisition will augment Tech Mahindra’s position as a leading digital transformation enabler in the Work at Home Customer Experience Management domain. Additionally, Tech Mahindra will leverage Activus Connect’s customizable omni-channels and AI-powered compliance analytics platform, SmartVirtual™, to render a secure cloud-based ecosystem of technologies, analytics, and virtual management practices. This will enable friendly, smart, efficient, and effective outcomes for consumers across the globe.

Vivek Agarwal, President – BFSI, HLS and Corporate Development, Tech Mahindra, said, “WAH CXM is undergoing disruptive changes due to the pandemic and has given rise to exponential demand in the market. The acquisition of Activus will fill a whitespace, with their unique delivery model, disruptive platform, and expertise in the WAH CXM industry that will add significant value to Tech Mahindra’s offerings and capabilities. We welcome Activus employees into the Tech Mahindra family and look forward to achieve great success together.”

Founded in 2018 to reimagine the customer experience, Activus Connect offers outsourced customer experience (CX) solutions and SmartVirtual™ technology to support and elevate chat, email, phone, text, video, and social experiences. The acquisition will enable Tech Mahindra to offer multilingual, multichannel, voice & non-voice customer care, sales, retention, social media moderation and technical support to customers across verticals.

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Felix Serrano, Chief Executive Officer, Activus Connect, said, “We could not be more excited about the significance of today’s announcement, and what it means for our valued team members, customers, and the Tech Mahindra family. As a leading provider of employee based, 100% workat-home solutions, the synergies between Activus Connect & Tech Mahindra will usher in a new chapter of Customer Experience Management (CXM) powered by Virtual CX. I see today as the beginning of a new-new, a realization that Virtual CX is core to the continued evolution of our industry.”

Birendra Sen, Business Head, Business Process Services, Tech Mahindra, said, “ In line with our strategy of expanding our US presence to provide high quality digital customer experience services, we are very happy to welcome the Activus Connect team to the Tech Mahindra family. This acquisition will enable our customers to rapidly scale and operate by leveraging the Work at Home model. We believe that together we will continue to push the limits on providing superior outcomes for our customer.”

As part of the NXT.NOW[TM] framework, Tech Mahindra aims to enhance human centric experiences for businesses. This means focusing on investing in emerging technologies and solutions that enable digital transformation to better meet the evolving needs of its customers through our DigitALL framework.

About Activus Connect

Activus Connect provides specialized customer experience and customer care solutions for a digital world. We are the evolution of the traditional BPO-Contact Center, leveraging what we refer to as SmartVirtual™, the most advanced approach to outsourced CX service delivery in the industry. Our operation spans the continental United States, and Puerto Rico, where our +1700 remote Ambassadors provide unparalleled levels of customer support. Everyone at Activus lives the ethos of Elevating Experiences™, which applies to our employees, our clients, and with every customer interaction.

Diversity has always been a core strength, with a combination of our diverse leadership team and our unique mix of people, ethnicities, cultures, genders, faiths, and ideas has enabled us to provide a truly original brand of customer care that transcends boundaries. And as a business we are committed to protecting the company culture of providing meaningful, life-changing experiences to employees and customers at every possible opportunity because good business starts and ends with treating people the right way.

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Website: www.activusconnect.com Linkedin: www.linkedin.com/company/activusconnect Facebook: www.facebook.com/activusconnect

About Tech Mahindra

Tech Mahindra offers innovative and customer -centric digital experiences, enabling enterprises, associates and the society to Rise. We are a USD 5.1 billion organization with 141,100+ professionals across 90 countries helping 1123 global customers, including Fortune 500 companies. We are focused on leveraging next-generation technologies including 5G, Blockchain, Cybersecurity, Artificial Intelligence, and more, to enable end-to-end digital transformation for global customers. Tech Mahindra is one of the fastest growing brands and amongst the top 15 IT service providers globally. Tech Mahindra has consistently emerged as a leader in sustainability and is recognized amongst the ‘2021 Global 100 Most sustainable corporations in the World’ by Corporate Knights. With the NXT.NOW[TM] framework, Tech Mahindra aims to enhance ‘Human Centric Experience’ for our ecosystem and drive collaborative disruption with synergies arising from a robust portfolio of companies. Tech Mahindra aims at delivering tomorrow’s experiences today, and believes that the ‘Future is Now’.

We are part of the Mahindra Group, founded in 1945, one of the largest and most admired multinational federation of companies with 260,000 employees in over 100 countries. It enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India and is the world’s largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality and real estate. The Mahindra Group has a clear focus on leading ESG globally, enabling rural prosperity and enhancing urban living, with a goal to drive positive change in the lives of communities and stakeholders to enable them to Rise.

Connect with us on www.techmahindra.com || Our Social Media Channels For more information on Tech Mahindra, please contact:

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Abhilasha Gupta, Global Corporate Communications and Public Affairs

Email: [email protected]; [email protected]

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