The Boards of Directors of Tech Mahindra Limited (“Tech Mahindra”) and Satyam Computer Services Limited, (“Mahindra Satyam”), in their respective meetings held today, approved a proposal to merge Mahindra Satyam with Tech Mahindra along with certain wholly owned subsidiaries of Mahindra Satyam and Tech Mahindra.
The Tech Mahindra & Mahindra Satyam merger heralds the creation of a formidable top-tier global player. The newly formed entity emerges as one of India’s largest IT employers. The newly created entity would be the fifth largest IT Services company in India.
The merger will result in the creation of a new offshore services leader with revenues of approximately US$2.4bn in revenues, approximately 75,000+ strong work force and 350+ active clients (including Fortune Global 500 companies), across 54 countries. The joint entity will have a unified go-to-market strategy with deep competencies and a balanced mix of revenues from Telecom, Manufacturing, Technology, Media & Entertainment, Banking Financial Services and Insurance, Retail and Healthcare.
Revenues will be well balanced with a diversified global footprint that would boast of contribution from Americas at 42%, Europe at 35% and Emerging Markets at 23% The combined entity will leverage Tech Mahindra’s expertise in Mobility, System Integration, and delivery of large transformations and to better penetrate the opportunity presented by Mahindra Satyam?s diverse set of clients across multiple verticals.
Likewise Mahindra Satyam’s expertise in Enterprise Solutions will enable a more complete value proposition to be delivered to Tech Mahindra’s clients. The combination will benefit from operational synergies, economies of scale, sourcing benefits, and standardization of business processes.
Commenting on the merger:
Mr. Anand G Mahindra, Chairman, Tech Mahindra said “This merger will help propel the combined entity into the top tier of Indian software and services companies, achieving the Group’s key objective of being in a leadership role in each of our focus business areas”.
Mr. 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”.
Mr. 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.