The company spends $ 580 million to buy the SSII victim of a massive accounting fraud and into the top group of Indian companies in the sector.
The takeover of Satyam, the fourth computer services company in India, which it had been 7 January 2009 she was the victim of a huge accounting fraud, organized by its founder, will reshuffle the cards in the IT sector in India. Hyderabad firm will eventually be taken over by the Indian company Tech Mahindra. The latter has serious rear that will enable it to deliver Satyam afloat and become one of the major of computer science in India.
580 millions of dollars
To do this, Tech Mahindra will buy 51% of Satyam, for a total of about $ 580 million.
Determining the fair sum he was willing to pay has not been easy for Tech Mahindra – any more than for the other candidates from elsewhere. Because they had to make offers without knowing the real situation of Satyam. For three months since the founding of this group has confessed his wrongdoing, teams of experts try to reconstruct the accounts of the group, but they have not yet reached the end of this task.
Tech Mahindra has therefore taken a decision on what Satyam would provide in terms of development potential, and suggested that more competition. It is true that there was greater competition in the world at the end of the trail. The rival company Larsen & Toubro has remained in line until the end. Having adopted an approach similar to M & M, ie a strategy of accelerated development of its subsidiary, it has nevertheless substantially less. Larsen & Toubro, was regarded as the best placed candidate, since it already owned 12% of Satyam, purchased on the market.
The bid from IBM, which is considered extremely likely by the media and professionals in India, has however not been confirmed.
It is now the new owner to watch very closely what is Satyam state: there has been a mass exodus of customers over the last three months, what is the morale of the troops? And it also probably will wait with some anxiety revelations that could lift the various investigations currently being carried out on the biggest fraud ever carried out in an Indian company.
Tech Mahindra is a new major of the Indian
Tech Mahindra is mostly in the Mahindra & Mahindra company, one of the largest in the country, activities are highly diversified. The subsidiary of M & M comes from an alliance with the British telecoms operator BT, which owns 30% of Tech Mahindra. This company is specialized in telecom software, and BT is by far its largest customer. But with the takeover of Satyam, it is a completely different category.
First, Tech Mahindra will move from a ranking of “mid-table in the range of Indian software houses to a place in the lead. Then the group will largely diversify their skills. By getting the business of Satyam, it will go to sectors of activity he did not know before (finance and many others), he will get his hands on a portfolio of international clients leading and it will finally diversify geographically, the United States and Japan in particular.