M&M to buy majority stake in US IT firm

Mahindra & Mahindra Ltd is buying the majority stake in United States-based Bristlecone Inc, an enterprise resource planning company, through a new overseas joint venture company with an investment of up to $7 million.

The Mumbai-based company would transfer its five subsidiaries -- Mahindra Consulting Ltd, Mahindra Consulting (Singapore) Pte. Mahindra Consulting GmbH, Mahindra Consulting Inc, USA and Mahindra Intertrade (UK) Ltd -- to the overseas joint venture company, Ulhas Yargop, M&M president (telecom and software sector), said on Monday.

The company would make investment not exceeding $7 million in one or more tranches, he said.

M&M has signed the pact to acquire a majority stake in California-based Bristlecone, through a new overseas JV subsidiary company and would be effective on receipt of the requisite approvals from Foreign Investment Promotion Board and Reserve Bank of India, he added.

Bristlecone Inc is a provider of enterprise resource planning and supply chain management solutions, including SCM integration consulting & implementation services based on the SAP APO suite.