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Tech Mahindra, Satyam Computer complete merger

The merged entity will be called Tech Mahindra; Anand Mahindra will be Chairman and CP Gurnani the MD and CEO. It will be among the top 5 IT services companies with revenue of USD 2.7 billion.

June 25, 2013 / 08:18 PM IST
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Moneycontrol Bureau

Tech Mahindra and Mahindra Satyam (Satyam Computer Services) have formally completed the merger, the two IT services companies said on Tuesday. The announcement comes four years after the Mahindra Group company acquired Satyam, then hit by an accounting scandal by its promoter Ramalinga Raju.

The merged entity will be called Tech Mahindra and Anand Mahindra will be its chairman.

CP Gurnani will be the MD and CEO of the merged entity and Milind Kulkarni will take charge as the CFO.

Post the merger, the company becomes one of top 5 IT companies, with revenue of USD 2.7 billion, and a teamof 84,000 professionals servicing 540 customers across 46 countries. Gurnani has said there will be no job losses post the merger.

"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...I'm confident that we are now geared to grow even faster in the future," said, Anand Mahindra, group chairman, Mahindra & Mahindra.

The company will now be divided into three units -- Telecom, Enterprise and BPO (business process outsourcing).

"Over the past four years, while we worked through the statutory and legal issues, our teams worked closely on the ground to integrate processes, eliminate overlaps, leverage best practices and deliver enhanced value to all our stakeholders. Today, as we formally become one, our unified go-to-market strategy will allow us to meet the growing needs of businesses with renewed vigor and pro-activeness," said Vineet Nayyar, Executive Vice Chairman, Tech Mahindra.

The boards of the two companies had approved the merger on March 21, 2012. The final hurdle was cleared when Andhra Pradesh High Court gave its clearance earlier this month.

Tech Mahindra shares were up 1.3 percent at Rs 1,014.60 on NSE in noon trade. Satyam was up 1.3 percent at Rs 116.30.

The share swap will take place on July 5. The swap ratio for the merger had been fixed last year at 8.5 shares of Satyam for every one share of Tech Mahindra.

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