BT-Backed Tech Mahindra Wins Battle for Satyam Computer Services
Tech Mahindra, part of one of India's largest conglomerates and a provider of IT services to the telecommunications sector, has won the battle for the beleaguered services company Satyam Computer Services Ltd in a deal worth over $500 million.
The company was yesterday declared the highest bidder for Satyam with an offer valued at $351 million for a 31% stake in Satyam, with the requirement to purchase 20% more at the same price per share later. The bid was reported to be 20% higher than the next closest bidder, and more than double that of the lowest.
Tech Mahindra was formed in 1998 as a joint venture between BT and Mahindra. Tech Mahindra employs 22,000 people and this merger will propel it in to the big players' league. From being primarily a single-client company (BT being the company's largest customer), an expanded Tech Mahindra is well placed to compete with the top three Indian services outfits for the biggest projects, the company said.
