Tech Mahindra said it has signed an agreement with BASF Business Services Holding, a unit of German chemical giant BASF, to acquire its business with third party customers.
“This includes the 100%-owned subsidiary BASF Business Services Consult GmbH, based in Hamburg. BASF Business Services Holding GmbH will in future focus on providing information services, supply chain operations and business process management for BASF Group,” the Mumbai-based company said.
Legal closing of the transaction is expected to happen in the first quarter of FY 2015. All 60 employees of BASF Business Services Consult GmbH will be transitioned to Tech Mahindra as part of this transaction, it said.
No financial details were given out by Tech Mahindra.
However, German media reports suggested that the third-party clients of BASF Business Services Holding generates sales in the “low double-digit million euro range.” All 60 employees of BASF Business Services Consult GmbH are included in the transaction and retain their employment contracts with the company, said a report.
BASF Business Services Holding will in future focus on providing information services, supply chain operations and business process management solutions exclusively for BASF Group.
The transferred business ranges from consulting, development and operation of IT systems to the design and optimization of business processes throughout the value chain.
“This acquisition will see the creation of a strong ICT player in the region with strengths in Application and Infrastructure Business Services,” Tech Mahindra said.