Tech Mahindra has announced completion of Mahindra Satyam's merger with itself, creating the country’s fifth largest software services provider with a turnover of around $2.7 billion. The merged entity will be called Tech Mahindra and group chairman Anand Mahindra will be the chairman of the combined entity. TechM will now aim to nearly double sales to $5 billion by 2015 with focus on telecom, manufacturing, BFSI among others. “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,” Mahindra said in a statement.
"Over the past four years 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 shareholders," Tech Mahindra executive vice chairman Vineet Nayyar said.
The Mahindra group had in 2009 taken over Satyam Computers after a multi-billion dollar scam by its founding chairman B Ramalinga Raju was unearthed. Boards of Tech Mahindra and Mahindra Satyam had approved the merger on March 21, 2012. After an approval from the Bombay High Court, the merger had been awaiting clearances from Andhra Pradesh High Court, which gave nod on June 11, 2013.
Tech Mahindra managing director CP Gurnani said, "we will continue to focus on telecom and manufacturing. And we strongly believe that by 2015 we will be a $5 billion company." The share swap will take place on July 5 in the ratio of 8.5 shares of Satyam for every share of Tech Mahindra held. The combined firm, which will have its headquarters in Mumbai, now has an employee strength of 84,000 serving 540 clients across 46 nations. It has 11 locations in India and 15 overseas for BPO operations and software development.
On combined entity's investment plan, Tech Mahindra chief marketing officer and global business consulting head T Hari said it has been investing in platforms to make it more competitive. On acquisitions, he said, "we can go for acquisition this year too, but it should enhance our competitiveness and services potential and at the same time create a niche service portfolio."
