• Mahindra buys Pininfarina


    MAHINDRA20151222TECH Mahindra Limited, a leading provider of information technology, networks and engineering solutions and business process outsourcing services, and Mahindra & Mahindra, part of the global $16.9-billion Mahindra Group, have jointly entered into an agreement with Pincar SRL, to purchase a controlling stake in Pininfarina SpA, an iconic Italian brand in automotive and industrial design.

    Pininfarina’s legendary brand status will allow Tech Mahindra powerful access to relationships the iconic designer has nurtured with the best in the world over its 85-year history, including with Ferrari, Alfa Romeo, Maserati and Peugeot. This will mean an opportunity for Tech Mahindra to influence product conceptualization, and design and styling through Europe’s best-in-class design house.

    As part of the agreement, Tech Mahindra and Mahindra & Mahindra shall purchase 76.06 percent of Pininfarina shares from the current controlling shareholder Pincar at a price of Euro 1.1 per share. This investment by Tech Mahindra and Mahindra & Mahindra shall be done via a joint venture company, whose ownership shall be held 60-percent by Tech Mahindra and 40-percent by Mahindra & Mahindra.

    This will be followed by an open offer for all the remaining ordinary shares of Pininfarina, at the same purchase price paid for the shares held by Pincar. A rights issue to infuse funds into the design and styling major will also be executed before the end of 2016.

    Pininfarina will continue to remain an independent company, listed on the Milan Stock Exchange, with Paolo Pininfarina continuing as chairman of its board.

    Where customer experience determines the future of business, this acquisition will give Tech Mahindra a critical foothold in key, early-stage conversations in the automotive and other verticals. Tech Mahindra will also benefit from the designer’s focused presence in Italy and Germany, the hotbeds of European automotive manufacturing, as well as in the United States and an emerging automotive market, China.

    For Pininfarina, the acquisition will mean an ability to leverage Tech Mahindra’s presence across 90 countries and access to about 780 customers. Tech Mahindra’s global delivery model will lend Pininfarina a newly heightened scale to its operations.

    Reinforcing Tech Mahindra’s vision of a world of “Connected Solutions,” this combination will enable a strong entry into automotive styling, exclusive vehicles design and development and reinforced body engineering capability. It also augments Tech Mahindra’s transportation, aerospace and industrial design offerings. The synergy will help the duo cross-sell and up-sell their services to existing clients and help attract new ones.

    Pininfarina is a styling company best known for its stunning designs of famous car brands – including Ferrari, GM, Peugeot and Alfa Romeo. Started 85 years ago by founder Battista “Pinin” Farina, the company is the Italian symbol for jaw-dropping car designs. It has designed almost 1,000 cars across brands over the years.

    The company’s enduring relationship with Ferrari began when Pinin Farina and Enzo Ferrari met in 1951. Farina designed the first Ferrari, the 212, followed by the tremendously popular 250 GT. Farina’s breath-taking designs took Hollywood by storm, too, inspiring the film “Sabrina” starring Audrey Hepburn, William Holden and Humphrey Bogart, along with the Spider that Farina designed.

    Pininfarina SpA is an independent Italian car design company, founded and run by the Pininfarina family since 1930. Over the years, Pininfarina has designed vehicles for world-renowned manufacturers like Ferrari, Alfa Romeo, Peugeot, Fiat, GM, Lancia, Maserati, Hyundai and Mahindra & Mahindra, among others. Pininfarina SpA has also designed high-speed trains, buses, trams, rolling stocks, automated light rail cars, people movers, yachts, airplanes and private jets. In addition, Pininfarina consults on industrial design, interior design, architecture, and graphic design.


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