Feeds

Tech Mahindra to swallow Satyam in BILLION dollar deal

Indian outsourcers can't get enough of each other

High performance access to file storage

The wonderful world of outsourcing is about to get a little bit smaller after Indian tech giants Tech Mahindra and Mahindra Satyam announced their intention to merge, creating India’s fifth-largest IT and outsourcing group by revenues.

In reality it is Tech Mahindra in the driving seat, as the outsourcing giant bought a controlling stake in Satyam in 2009 after the firm became embroiled in one of India’s biggest ever corporate scandals.

The $1bn (£630m) merger will give birth to a company with revenues of around $2.4bn (£1.5bn), a workforce of approximately 75,000 and over 350 clients across 54 countries, according to the firms.

However, Ovum analyst Ed Thomas warned that the saga is far from over.

“It will take the rest of the year for the merger process to be concluded and no name for the combined entity has yet been announced,” he said.

“On this latter point, it will be interesting to see if the Mahindra Group, which will own over one quarter of the new operation, decides to finally rid itself of the Satyam brand, which was badly tarnished by the accounting scandal that came to light in 2008.”

That scandal emerged when Satyam founder B Ramalinga Raju admitted he had been inflating profits at the firm by almost a billion pounds over several years.

The government was ultimately forced to step in and the company was offloaded to rival Tech Mahindra.

BT of course owns about a quarter of Tech Mahindra as it founded the firm in the mid 80s as a joint venture, so will get its mitts on 12.8 per cent of the new entity.

Unsurprisingly gushing statements from both sides of the table pointed to an “important new chapter” in the history of both firms.

"This merger will help propel the combined entity into the top tier of Indian software and services companies, achieving the [Mahindra] Group's key objective of being in a leadership role in each of our focus business areas," said Tech Mahindra chairman Anand Mahindra. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Analysts: Bright future for smartphones, tablets, wearables
There's plenty of good money to be made if you stay out of the PC market
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.