Two IT services Tech Mahindra and Mahindra Satyam (Satyam Computer Services ) formally completed the official merger on Tuesday. Announcement of the amalgamation comes four years after the Mahindra group acquired fraud-hit Satyam Computer Services.
The merger had been approved by the boards of two companies on March 21, 2012 but was awaiting clearance from the Andhra Pradesh High Court, which gave the nod earlier this month.
The swap ratio for the merger had been fixed last year at 8.5 shares of Mahindra Satyam for every one share of Tech Mahindra.
Anand Mahindra, group chairman, Mahindra & Mahindra, said, "Today we have fulfilled the commitment made in 2009, when we acquired Satyam, to jointly become one of the largest, diversified players leveraging technology for business solutions.
"Tech Mahindra is a testimony to the tireless efforts of our associates and the trust reposed by our investors. I'm confident that we are now geared to grow even faster in the future.”
One of the top 5 IT companies
The merged entity will be called Tech Mahindra and has a new logo now. Anand Mahindra will be the chairman CP Gurnani the MD and CEO while Milind Kulkarni will take charge as the CFO.
Tech Mahindra is now one of top five IT companies, with revenue of $ 2.7 billion. It has a professional strength of 84,000, servicing 540 customers across 46 countries. The combined entity will now be divided into three units--Telecom, Enterprise and BPO (business process outsourcing).
The Bombay headquartered company now has 11 locations in India and 15 overseas for BPO operations and software development.
"Over the past four years, while we worked through the statutory and legal issues, our teams worked closely on the ground to integrate processes, eliminate overlaps, leverage best practices and deliver enhanced value to all our stakeholders. Today, as we formally become one, our unified go-to-market strategy will allow us to meet the growing needs of businesses with renewed vigor and pro-activeness," said Vineet Nayyar, Executive Vice Chairman, Tech Mahindra.
Shares in both the companies traded higher with over one per cent gains each. While Satyam rose 1 per cent to Rs. 115.90, Tech Mahindra advanced 1.1 per cent to Rs. 1,010.20 on Bombay Stock Exchange.