Thursday, March 22, 2012

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Mahindra Satyam, Tech Mahindra merge to create $2.4-billion company

The erstwhile Satyam Computer Services and Tech Mahindra announced details of their planned merger, saying the whole will be greater than the sum of their parts and positioning themselves as a player with the potential to challenge India's top-tier software companies.

The merger ratio, at 17 shares of Mahindra Satyam for two Tech Mahindra shares, was along expected lines, valuing the former Satyam at $1.8 billion (Rs 9,000 crore). CP Gurnani, the chief executive of Mahindra Satyam who oversaw the difficult transition of a fraud-hit firm to normalcy, will be the head of the combined entity, whose name has not yet been chosen. "It is a marriage made in heaven," Gurnani said on Wednesday about the merger, which becomes effective from April 2011.

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