Indian IT firm Tech Mahindra completes Satyam takeover

Jun 25, 2013

Indian IT outsourcer Tech Mahindra on Tuesday completed a takeover of its partly-owned unit Mahindra Satyam, creating a new force in the sector with annual revenues of $2.7 billion.

The new entity will retain the name Tech Mahindra—with a new logo—and be amongst India's top five locally-listed IT outsourcers with 540 clients, a Tech Mahindra statement said.

Tech Mahindra bought a 42.7 percent stake in Hyderabad-based Satyam in April 2009 when it was on the verge of following an .

The company has since operated under the name Mahindra Satyam and has emerged from the crisis profitable, posting a of 9.01 billion rupees ($152 million) for the last financial year ended March 2013.

The two companies approved a full merger in March 2012.

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.

"Today we have fulfilled the commitment made in 2009, when we acquired Satyam, to jointly become one of the largest diversified players," said a statement from Anand Mahindra, chairman of parent group Mahindra and Mahindra.

The merger comes as many of India's IT are going through a rough patch, with the outlook for the industry difficult due to uncertainty in key US and European markets.

Satyam stunned corporate India in 2009 when its founder B. Ramalinga Raju admitted he had for years overstated profits and inflated the firm's balance sheet by more than $1 billion.

The scandal nearly pushed Satyam into bankruptcy as clients and staff exited, but , part of Indian auto and farm equipment manufacturer Mahindra and Mahindra, came to the rescue.

Raju, once a star of India's software boom, is awaiting trial for conspiracy, cheating and forgery.

Explore further: Why the Sony hack isn't big news in Japan

add to favorites email to friend print save as pdf

Related Stories

India's Satyam quarterly profit jumps 56%

Aug 02, 2012

Indian software outsourcer Mahindra Satyam on Thursday said its quarterly net profit rose 56 percent year-on-year, beating forecasts as orders climbed.

India's Tech Mahindra announces Satyam merger

Mar 21, 2012

India's Tech Mahindra announced its long-awaited buyout of IT outsourcer Satyam Computer on Wednesday, creating a new force in the sector with annual revenue of $2.26 billion.

India's Mahindra Satyam posts strong profit growth

Feb 01, 2012

India's software outsourcer Mahindra Satyam on Wednesday posted a near five-fold jump in its third quarter net profit, beating market forecasts, as margins were boosted by a fall in the rupee.

India's Satyam posts strong profit growth

Nov 10, 2011

Indian software outsourcer Mahindra Satyam on Thursday said its quarterly net profit soared more than ten-fold, beating market estimates, as demand for outsourcing grew.

Recommended for you

China's Xiaomi raises more than $1 bn in funding

1 hour ago

China's top smartphone seller Xiaomi Corp. is raising more than $1 billion in a fresh round of funding, a move which would raise its valuation above $45 billion, a report said Sunday.

Why the Sony hack isn't big news in Japan

23 hours ago

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

Dec 20, 2014

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

Dec 20, 2014

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.