Mahindra Group vice chairman Anand Mahindra’s gambit to acquire the fraud-hit Satyam is set for a corporate climax in the form of a merger with in-house firm Tech Mahindra to build a $2-billion software behemoth that would catapult the combined entity into the industry’s big league.
With balance-sheets, clients and cost optimisation coming together in an integration of the Pune-based TechM with Hyderabad-based Mahindra Satyam (formerly Satyam Computer Services), company executives say the merger process could begin as early as next month.
“Ultimately both companies are two legs of a toy that can simply join. There is minimal overlap. The earlier we do it, the better it is,” CP Gurnani, chief executive officer of Mahindra Satyam told Hindustan Times in an exclusive interview.
Gurnani expects the merger to complete in the next eight to nine months. “We are talking about a merged entity closer to next financial year,” he said.
The merged-entity will mark pitchfork the company into top five of the elite league of software companies alongside TCS, Infosys, Wipro and HCL. “We will kick off the merger process as early as May or June,” Gurnani said.
Mahindra Satyam chairman Vineet Nayyar said the two companies are going to be a very “powerful combination when it comes to the Indian IT landscape.” “I think the combined entity will give a boost to the Indian IT Space and open up greater avenues for ICT enabled solutions.” “We have to make sure that bankers give us a green light, secure necessary permission from the investigating agencies,” Gurnani said.