Tech Mahindra subsidiary sells stake in Altiostar to Rakuten for $45 million

Tech Mahindra subsidiary sells stake in Altiostar to Rakuten for $45 million
Rakuten Mobile and Tech Mahindra have also signed an agreement, where the Indian tech firm are going to be a preferred partner and supply technologies also as software capabilities to support the event and deployment of mobile networks for global customers of RCP (Rakuten Communications Platform).

Through the agreement, that also will provide managed IT, security and network services to Rakuten Mobile, a press release said. (File photo)
IT services major that on Wednesday said its subsidiary has divested over 18.5 million shares in Altiostar Networks for USD 45 million (about Rs 331 crore) to Rakuten USA, Inc.

“Tech Mahindra (Americas) Inc – an 100 per cent subsidiary of Tech Mahindra Ltd – divested its holding of 18,518,518 C1 preferred stock in Altiostar Networks,” Tech Mahindra said during a regulatory filing.

Given that it’s a minority investment, there’s no contribution to turnover/revenue/income and net worth by Altiostar Networks, Inc during last fiscal year , it added.

“The buyer is Rakuten USA, Inc,” the filing said, adding the consideration received from the sale is USD 45 million.

Rakuten Mobile and Tech Mahindra have also signed an agreement, where the Indian tech firm are going to be a preferred partner and supply technologies also as software capabilities to support the event and deployment of mobile networks for global customers of RCP (Rakuten Communications Platform).

Through the agreement, Tech Mahindra also will provide managed IT, security and network services to Rakuten Mobile, a press release said.

There also are plans to designate Tech Mahindra as a politician reseller of RCP, it added.

“This first of its kind collaboration with Rakuten Mobile not only strengthens our existing partnership with them but also will enable us to drive innovation within the telecom space, provide enhanced customer experience and lead the transformation in mobile network technology from the forefront,” Tech Mahindra director and CEO C P Gurnani said.

Mickey Mikitani, Chairman, President and CEO of Rakuten Inc, said that with a standard vision for digital transformation of the telecommunications industry, the corporate is extremely excited about the potential of the partnership with Tech Mahindra in bringing more agile, responsive and efficient services to customers round the world.

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