Mumbai: Tech Mahindra on Tuesday announced the acquisition of Hutchison Global Services (HGS), the call centre arm of Hutch here, for $87.1 million (Rs 484.03 crore). "The deal will bring a new revenue of $845 million over the next five-year period as clients of HGS have committed to procure services worth that amount, and have agreed to HGS being their exclusive provider of certain agreed services here," Tech Mahindra executive vice-chairman Vineet Nayyar told reporters here on Tuesday evening. This could mean the software services major will see a revenue accretion of around $170 million per annum.
Nayyar said HGS will continue to operate as a separate entity for the time being. He said that the BPO has been providing services to Hutchison in the past and set up and operated their units in Indonesia and Australia. "We have just been awarded a contract for the same services in Britain for Hutchison's franchise called 3." But the British contract is not part of the HGS deal, he added.
Asked whether the deal is withholding tax-compliant, Nayyar answered in the affirmative. " Yes, we are fully aware of the tax laws. We have been complying with all tax laws."
Tech Mahindra CFO Sonjoy Anand said the company will comply with current tax laws that are applicable to any deals made out of Mauritius wherein the buyer ends up paying withholding tax. "The tax laws impact our transaction in a number of areas - on operational areas and transaction-related segments. As far as the transaction-related areas are concerned, there are some issues regarding interpretation and that need to be taken care of by us and Hutch. I cannot be very specific except to assure you that we have taken the best advice and we are going to make sure that we will be compliant with all the laws," Anand said. agencies
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