Tech Mahindra wins a bid to buy Satyam Computers for 577.8 Million USD
Tech Mahindra will acquire Satyam Computers at approximately $1.5/share for approximate total of $577.8 M (2889 Crores INR at 58 Rs/share ) Satyam Computer will operate as a separate entity with separate liabilities. There were other bidders too – L & T, Cognizant etc.
Tech Mahindra will buy31% stake in Satyam by paying $351.4 M approximately (1757 Crores INR). The transition procedure will be long and it will happen gradually. Tech Mahindra and Satyam Computers together will be a good competition to Indian/Major World IT Consulting Companies. They will be in same league as Infosys, Tata Consultancy Services, Accenture, IBM etc.
Tech Mahindra’s stock soared during trading at BSE.
This move is a good one for Satyam as a company but as usual with merger and acquisition there will be shredding in some division and removal of redundant positions at executive levels.
