Tech Mahindra buys Satyam

In 3 months time, the name of the acquirer for fraud-hit Satyam Computer Services is out today and it is Tech Mahindra that has won the bid at Rs58 per share. Tech Mahindra will now owe 31 per cent stake in Satyam by paying out 1757 crore (almost 357 million USD) in the deal.

The Telecom giant Tech Mahindra won the bid by beating Larsen and Toubro and Cognizant Technology Solutions as well. Tech Mahindra has paid Rs 58 for a 10-rupee share to acquire 31 percent stake. The bid made by Larsen and Toubro Rs. 49.50 per share.

It is expected that transition will happen smoothly and it will be quite a quick process too, with CLB approval will not take much time. Again Tech Mahindra officials have been quoted saying that there will be not mass layoffs in Satyam, but yes synergy with employees will be of highest priority.

The bigger challenge is now with seamless integration of the clients. Tech Mahindra is a telecom manager so there will be question on how the company will address and tackle issues of IT development in various sectors ranging from automobile to banking. Next, move is whether Satyam brand will remain as Satyam or will there be any change.

So lots of speculation on these moves and more is yet to unfold.