Telecom Lead India: Mahindra Satyam, formerly Satyam
Computer Services, will be merged with Tech Mahindra, creating a new entity
worth US $2.4 billion. The merger also includes certain wholly owned
subsidiaries of Mahindra Satyam and Tech Mahindra.
However, the companies have not revealed the details on
what will be the name of the new entity.
Commenting on the merger, Ovum’s senior analyst, Ed
Thomas said, That is not to say that this announcement bring the saga to an
end. It will take the rest of the year for the merger process to be concluded
and no name for the combined entity has yet been announced. On this latter
point, it will be interesting to see if the Mahindra Group, which will own over
one-quarter of the new operation, decides to finally rid itself of the Satyam
brand, which was badly tarnished by the accounting scandal that came to light
in 2008.”
Tech Mahindra has expertise in Mobility and System
Integration. This, when combined with Mahindra Satyam’s expertise in Enterprise
Solutions, will benefit operational synergies, economies of scale, sourcing
benefits, and standardization of business processes.
In addition to the US$2.4bn in revenues, the merger will
bring together approximately 75,000+ strong work force and 350+ active clients
(including Fortune Global 500 companies), spread across 54 countries. The
combined entity will acquire competencies to serve a mix of clients from
Telecom, Manufacturing, Technology, Media & Entertainment, Banking
Financial Services and Insurance, Retail and Healthcare.
Vineet Nayyar, vice chairman and managing director
of Tech Mahindra and chairman of Mahindra Satyam said, “This merger is a
key part of our strategy to deliver industry leading performance.”
Meanwhile C.P. Gurnani, whole-time director and CEO
of Mahindra Satyam said, “The Mahindra Satyam turnaround is a shining
story of determination and grit and now comes to its most important chapter,
with this merger”. “As enterprises the world over look to bolster
their IT strategies to keep pace in the connected world, this merged entity
will provide the perfect blend of capability to address this evolving market”
he added.
Tech Mahindra Q3 revenue up 19% at Rs 1,445 crore
Tech Mahindra has reported 19 percent increase in Q3
y-o-y revenue at Rs 1,445 crore. The company’s net profit stood at Rs 276
crore, increased by 14.8 percent in the third-quarter.
During the quarter, revenue from Telecom Service Provider
totaled Rs 1,135 crore, up by 7 percent from Rs 1,056 crore in the prior year
quarter. Revenue from ‘Telecom Equipment Manufacturer’ surged by 82 percent to
Rs 106 crore from Rs 58 crore in the year-ago quarter.
During the quarter, it added two new active clients,
taking the total customer count to 130.
