Shares of Tech Mahindra rose more than one percent on Wednesday after the company said its subsidiary will acquire 80 percent equity shares in Geomatic.AI for A$6m.

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However, with the broader market slipping into the red, shares of the technology major also erased most of its early gains. At 11:21 am, shares of Tech Mahindra were trading flat at Rs 1,440.45 on BSE.

Tech Mahindra is creating a next-generation Artificial Intelligence firm, Geomatic.AI, to focus on digital platforms led to non-linear growth, in partnership with AusNet Services, an Australian Energy & Utilities distributor, it said in a press release.

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Geomatic.AI will build digital twins for linear assets leveraging Cloud, Drone and Mobility technologies in the Geospatial domain. It is a company incorporated under the laws of Australia on February 7, 2022.

“As part of this deal, TechM will have 80 percent equity shareholding in Geomatic.AI, for consideration of A$6m. AusNet will have 20 percent shareholding and transfer digital workforce, Intellectual Property (IP), assets and client contracts to the newly formed entity,” Tech Mahindra said.

Prior to the acquisition, Geomatic.AI was a part of AusNet Services, an Australian Energy Company which is listed on the Australian Exchange.

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“This highly differentiated IP that TechM gains will position it uniquely to deliver Drone Technologies, Digital Twins, Artificial Intelligence led services to linear asset-intensive industries viz. Energy & Utilities, Transportation, Oil & Gas and Public Sector. TechM intends to further enrich this IP and take it to the American and European geographies where it sees heightened demand for this digital platform offering,” the technology company added.

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