Tech Mahindra, which offers software and billing systems to telecom players, acquired 31 per cent interest from Bharti which would still be left with 20 per cent post completion of the deal.
It will make an upfront payment of Rs 125 crore to buy the 51 per cent stake from Bharti Group, private-equity firm Sequoia Capital and networking equipment maker Cisco Systems.
The balance Rs 135 crore will be paid out over a period of five years based on Gurgaon-based Comviva achieving mutually agreed performance target.
Sequoia held 9 per cent stake in Comviva and Cisco held 6 per cent, both of whom have exited the firm after deal with Tech Mahindra.
Tech Mahindra will buy 13 out of 22 per cent stake of private equity firm WestBridge Capital.
"This acquisition is a significant step forward, in our vision of being a complete and comprehensive partner to our clients and like always, we are confident of making this a successful venture for our stakeholders," Tech Mahindra Executive Vice Chairman Vineet Nayyar told reporters here.
In addition to adding market leading capabilities, the acquisition will also strengthen Tech Mahindra's relationship with large telecom players globally, he added.
"The acquisition will significantly enhance our capabilities in the mobile VAS domain and provide access to a marquee client base, enabling significant cross-selling opportunities," Nayyar said.
It aligns well with the stated strategy of investing in emerging areas like network, mobility, analytics, cloud and security and further focus on non-linear growth, he added.
Post the acquisition, which is subject to regulatory approval, the new entity will be called Mahindra Comviva.
Formerly known as Bharti Telesoft, Comviva has revenues of about Rs 400 crore and about 1,400 employees.
"The existing mobility practice in Mahindra, which focusses on mobile devices, enterprise mobility and some products which are on managed services and looking at Comviva's strength, as a combined company we would be touching Rs 1,000 crore by March 2013... The three focus areas for Mahindra Comviva going ahead is mobile payments, mobile data and location-based services," Tech Mahindra managing director CP Gurnani said.
Tech Mahindra operates another wholly-owned specialised VAS arm Canvas M, which was formed in 2006