Satyam to invest Rs 380 cr in overseas buys
posted in Outsourcing News and Top Outsourcing deals |Source: www.business-standard.com
As part of its expansion plans to diversify its revenue base, Satyam Computer Services is investing over $95 million (around Rs 380 crore) in a couple of acquisitions abroad.
The company has entered into an agreement with Caterpillar Inc, the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines.
The deal for Satyam to acquire Caterpillar’s market research and customer analytics (MR&CA) intellectual property and assets is $60 million (Rs 240 crore).
Satyam will also launch a business unit to provide MR&CA solutions and services globally to Caterpillar and its customers in various industries.
“Caterpillar’s MR&CA IP and assets will complement our business consulting capabilities, deep industry knowledge and market research processes, enhancing Satyam’s offerings in these areas and enabling it to establish itself at the forefront of the substantial knowledge process outsourcing (KPO) market, which will touch $17 billion by 2010,” Ram Mynampati, president, Satyam, said.
It also entered into an agreement to acquire S&V Management Consultants, a Belgium-based supply-chain management firm services clients in the manufacturing and pharmaceutical industries.
The all-cash deal, $35 million (Rs 140 crore), includes initial and performance-based payments.
On the home turf, the company agreed to purchase Computer Associates’ stake in C&S, a smartcard and e-learning solutions provider, which was founded as a 50:50 joint venture in 2001.
“C&S, with revenues of $3 million (Rs 12 crore) and 36 employees, will help us address the Indian domestic smartcard business,” Mynampati said.
Satyam will pay $1.5 million (Rs 6 crore) for acquiring the 50 per cent share and rename the company C&S Private Ltd.
