Tech Mahindra's Hanab Partnership: A Blueprint for Post-PE Growth in European Utilities

The energy transition is reshaping the global utilities sector, demanding agility, scalability, and operational independence. Nowhere is this truer than in Europe, where regulators, investors, and consumers are driving utilities to modernize legacy systems and embrace digital innovation. Enter Tech Mahindra's partnership with Hanab, a Netherlands-based multi-utility provider, as a pivotal case study in how post-private equity (PE) carve-outs can transform into high-growth opportunities when paired with strategic IT modernization.

Why Hanab's Independence Matters

Hanab, acquired by Triton Partners in late 2024, faces a critical juncture: operational independence. For utilities under PE ownership, the clock starts ticking immediately. The PE firm's goal is to unlock value by separating the business from its former parent, optimizing costs, and positioning it for sale or IPO. Yet, without a robust IT infrastructure, such transitions risk operational fragmentation, compliance gaps, and lost market share.

Tech Mahindra's role is to carve out Hanab's IT systems entirely from its prior corporate ecosystem. This involves deploying a new IT Service Management (ITSM) platform, migrating legacy systems to the cloud, and automating workflows to ensure scalability. The result? A standalone utility with unshackled agility, ready to compete in a market increasingly dominated by digital-first players.

IT Modernization as the Catalyst for Energy Transition

The energy transition is not just about renewables—it's about data-driven efficiency. Utilities must integrate smart grids, IoT-enabled infrastructure, and predictive analytics to reduce costs and meet regulatory targets. Hanab's partnership with Tech Mahindra addresses this head-on. By embedding AI and IoT into its operations, Hanab can:
- Optimize energy distribution networks, reducing waste and improving grid reliability.
- Enhance customer service through real-time data analytics, a critical differentiator in deregulated markets.
- Comply with EU sustainability mandates with automated reporting tools.

Tech Mahindra's Track Record: Low-Risk, High-Reward

The partnership is not a gamble. Tech Mahindra has executed over 300 IT modernization projects in Europe, including carve-outs for PE-backed firms. Consider their work with a global chemical manufacturer, where they cut operating costs by 30% and generated $50 million in savings over five years—a template for Hanab's potential.

The firm's expertise in IT carve-outs is particularly critical. Post-PE, businesses often inherit fragmented systems and contractual obligations. Tech Mahindra's “first 100 days” framework ensures:
1. Due diligence to identify integration risks.
2. Infrastructure assessment to prioritize cloud and automation.
3. Phased execution that maintains data integrity and minimizes disruption.

Data-Driven Confidence: Why Investors Should Act Now

The market is signaling momentum. European utilities under PE ownership—targeted for carve-outs—are valued at €200 billion, with IT modernization cited as the top priority in 80% of deals. Meanwhile, Tech Mahindra's stock has risen 22% year-to-date, reflecting investor confidence in its digital transformation pipeline.

The Investment Case: Timing is Everything

This partnership is a strategic bet on two trends:
1. PE carve-outs in utilities, a sector ripe for consolidation and modernization.
2. Digital infrastructure plays, where Tech Mahindra's execution excellence reduces risk.

For investors, the upside is clear: Hanab's IT transformation could unlock 15–20% EBITDA margin expansion as costs fall and efficiency rises. Meanwhile, Tech Mahindra's recurring revenue streams from managed IT services position it to capitalize on a €45 billion European utilities IT spend forecast by 2030.

Conclusion: A Blueprint for Post-PE Success

The Hanab deal is more than a partnership—it's a playbook for utilities navigating the energy transition. By leveraging Tech Mahindra's expertise, Hanab secures a future-proof IT backbone, while investors gain exposure to a low-risk, high-growth synergy. The question is no longer whether to act, but when.

The energy transition is here. The tools to win are digital. And the winners will be those who move first.

Invest now in the utilities of tomorrow—built by the digital leaders of today.