Trans American Information Systems Private Ltd (TAISPL), a wholly-owned subsidiary of Mastek Limited has proposed to enter into a Scheme of Arrangement with Evolutionary Systems Private Limited (‘Evosys India’) pursuant to which the identified Indian business along with the USA, UK and Rest of the World businesses of Evosys India would stand demerged to TAISPL. Evosys promoters will strengthen the shareholder base of Mastek and will own 15% stake in Mastek Limited.
This transaction allows Mastek to diversify its geographic concentration, leverage the customer acquisition velocity that Evosys brings and provides an immediate addressable opportunity to increase our share of wallet and deliver more value for our customers. The successful sell-with partnering model that Evosys operates will help scale the combined businesses faster than traditional direct route to market.
Evosys’ complete executive team led by Founder and CEO Umang Nahata and Co-Founder and COO Rakesh Raman will continue to work for the larger organisation reporting to John Owen, Mastek Group CEO.
John Owen, Mastek Group CEO explains “The strategic intent is compelling for both companies. I am thrilled Umang, Rakesh and their outstanding team have accepted our invitation to combine resources under Mastek. We all see a fantastic opportunity to accelerate the digital transformation agenda for many more customers globally. Although the hard business logic is sound for both companies, and the integration plan is straight forward and pragmatic to not distract operations, we equally recognise that it is often the softer people motivations and intent that make these deals work. In Evosys, I see a successful team who already shares the same values, vision and ambition for Mastek as we do. Financially, this transaction will be immediately accretive to our growth and earnings however, we must be more ambitious. We will all measure success over the next few years by the value we create from building a strong cash generative Group.”
Speaking on the transaction, Umang Nahata, Co-Founder and CEO of Evosys said “We are excited to become a part of the Mastek Group. With our combined capabilities, market reach and financial resources, we are confident that we will be able to reach our strategic goals faster within this dynamic digital services organisation. We look forward to delivering enhanced value to our esteemed customers and building something special.”
EY India acted as an exclusive financial advisor on the transaction. Khaitan and Co acted as a legal advisor for Mastek whereas Cyril Amarchand Mangaldas acted as legal advisor for Evosys. Transaction Square was the tax advisor for Evosys.
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