Satyam to continue its shopping spree

Hyderabad, May 11

With six acquisitions in about 18 months, and sitting on a cash pile of over $1 billion (Rs 4,000 crore), IT services provider Satyam Computer continues scouting for more acquisitions, according to the company’s Chief Financial Officer, Mr Vadlamani Srinivas.

The company has invested $250 million (Rs 1,000-crore) in six acquisitions — Knowledge Dynamics, Citisoft, Nitor Global, BridgeStrategy, S&V Management and Caterpillar arm.

“We will concentrate on boutique acquisitions rather than a big one, as integration is easier. Therefore, we will pick and choose and not be hasty,” Mr Srinivas told Business Line.

“The company has planned a capital expenditure of $125 million (about Rs 500 crore) that would go into developing four SEZs — two in Hyderabad and one each in Chennai and Nagpur. We have also signed up with Tamil Nadu for land in Madurai and with Gujarat for land in Ahmedabad. However, these will be taken up next year,” he said.

Referring to the banking, financial services and insurance sector, Mr Srinivas said that the Bear Stearns episode stands out impacting investments of companies. We have factored various issues and have given a guidance of 24-26 per cent for the fiscal 2009. This may be like a moderated guidance due to marketplace.

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