Tech Mahindra completes Satyam merger
Tech Mahindra has become the fifth largest IT services provider in India after announcing its merger with its partly-owned Satyam Computer Services. It has revenues of roughly $2.7 billion, with 84,000 professionals servicing 540 customers across 46 countries, the company said in statement. The combined company will be called Tech Mahindra.
The merger comes as many of India’s IT outsourcing firms are going through a rough patch, faced with uncertainty in key US and European markets. Satyam went through a lean patch themselves in 2009 when its founder B Ramalinga Raju admitted to one of India’s biggest corporate frauds. The scandal nearly pushed Satyam into bankruptcy. However, Tech Mahindra, part of Indian auto and farm equipment manufacturer, Mahindra and Mahindra managed to save the company.
“Today we have fulfilled the commitment made in 2009, when we acquired Satyam, to jointly become one-of-the largest, diversified players leveraging technology for business solutions. Tech Mahindra is a testimony to the tireless efforts of our associates and the trust reposed by our investors,” said Anand Mahindra, Group Chairman, Mahindra & Mahindra.
Pune-based Tech Mahindra owns close to 43 percent of Satyam. The takeover of the remaining stake involves an exchange of stocks, with Satyam shareholders receiving one Tech Mahindra share for every 8.5 Satyam shares.
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