Mahindra to acquire Italian car designer Pininfarina for $28 million

India's fifth-largest IT services company Tech Mahindra and Mahindra and Mahindra Ltd, part of the Mahindra Group, have agreed to acquire Italy's Pininfarina SpA in an all-cash deal valuing the Turin-based car designer

Sanjeeb Kumar Sahoo
New Update
Italian car designer Pininfarina

NEW DELHI: India's fifth-largest IT services company Tech Mahindra and Mahindra and Mahindra Ltd, part of the Mahindra Group, have agreed to acquire Italy's Pininfarina SpA in an all-cash deal valuing the Turin-based car designer.


Under the deal, Tech Mahindra will pay around $28 million for 76-percent of the Italian design house, and plans to make offers for the remaining 24 percent.

"The Italian company is a styling company best known for its stunning designs of famous car brands – including Ferrari, GM, Peugeot and the 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 claimed.

In addition to the cash payout, the Indian company has guaranteed the Italian brand's creditors more than $125 million, and promises to invest a further $20-plus million into the company.


Over all, the company's investment into Pininfarina will be near $185 million (euro 168 million )

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 US 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 combine will enable a strong entry into automotive styling, exclusive vehicles design & development and reinforced body engineering capability. It also augments Tech Mahindra's Transportation, Aerospace & Industrial Design offerings. The synergy will help the duo cross-sell and up-sell their services to existing clients and help attract new ones,” the company said in a statement.

Tech Mahindra's well-entrenched Integrated Engineering Solutions (IES) business will complement Pininfarina's range of offerings. It is now equipped to pursue bigger opportunities in the outsourced Automotive Engineering Services industry that totals around USD 10 Billion with a CAGR of 8 per cent. The IES offering will be able to compete better with traditional western players, with styling, design and prototyping.

"Pininfarina will add enormous value to Tech Mahindra's portfolio of engineering services. But just as important is the fact that the legendary high-end design credentials of Pininfarina will significantly enhance the design capabilities of the entire Mahindra Group. Given the increasing design sensibilities of today’s consumers, product design will greatly influence customer choice and experience, and hence our success,” said Anand Mahindra, Chairman of the Mahindra Group.

"Further, Pininfarina's 25-year design expertise in industries beyond Automotive will give us that winning edge in areas such as Aerospace, Consumer Electronics, Architecture & Interiors and Transportation where we already have a strong footprint," according to CP Gurnani, CEO & Managing Director, Tech Mahindra.

"In a globalized world, entrepreneurship and capital do not need a passport. We are joining hands with a $ 3.9 Billion Technology & Global partner, and part of the $ 16.9 billion global Mahindra Group, which will not only strengthen our Italian identity but will open more doors. Tech Mahindra's global presence and global delivery model will allow us to compete for a larger pie of the business,” said Paolo Pininfarina, Chairman Pininfarina S.p.A..

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