May 1: Mahindra & Mahindra has agreed to subscribe to 10 percent shares of Resson Aerospace Corporation, a Canada-based IT firm. Mahindra & Mahindra will make a cash payment of Rs 6.63 million CAD for the acquisition as per the share subscription agreement.
As detailed in the regulatory filing, Mahindra & Mahindra has signed the share subscription agreement for subscribing up to 8,00,402 Class C preferred shares of Resson Aerospace Corporation. The agreement would result in Mahindra & Mahindra holding up to 10 per cent of the share capital of Resson Aerospace Corporation on a fully diluted basis.
The purchase of shares will help Mahindra & Mahindra to churn out new solutions that would be merged and deployed with its own farm technology solutions.
Resson Aerospace Corporation is a Canadian IT firm that caters to technology solutions for agriculture. The in-built solution of the company includes the one that captures and interprets images to assist farmers by providing information about the state of their field and crops.
Resson Aerospace Corporation, which primarily operates in Canada and the US, had a turnover of CAD 1.43 billion in 2017. Speaking of the acquisition, Mahindra & Mahindra said that the shares purchase will help the company to develop new technology solutions for its farm division.