Home >Companies >Merger proposal to be taken up in June AGMs: C.P. Gurnani

Hyderabad: Mahindra Satyam said on Tuesday that the merger process with Tech Mahindra Ltd is on track and should be completed in eight-nine months.

“In June, the annual general meetings of the two companies (Mahindra Satyam and Tech Mahindra) will take place," said C.P. Gurnani, chief executive officer of Mahindra Satyam, speaking to reporters at the Mahindra Satyam Infocity campus in Hyderabad.

“It is expected there would be no hurdles," he said.

On 21 March, the boards of Mahindra Satyam and Tech Mahindra approved a merger that will result in a company with a combined revenue of about $2.4 billion and more than 350 clients.

“Overall, the mood is positive; all the leaders are working together," said Gurnani on the integration process. “We have a lot of work to do, we are yet to reach that stage," he said, with reference to client acquisition as a combined entity.

On Tuesday, Mahindra Satyam and Tech Mahindra announced a tie up with US-based information technology services provider CA Technologies (formerly CA Inc.) to be preferred system integration partners globally. The partnership agreement signed between the three companies is aimed to offer shared and managed services to new and existing customers.

Satyam Computer Services Ltd came to the brink of collapse with an exodus of clients and employees after founder-chairman Ramalinga Raju confessed in January 2009 that profits had been overstated and assets falsified, in the country’s biggest accounting fraud. Satyam was sold in April 2009 to Tech Mahindra, a unit of Mahindra and Mahindra, in an open bidding process, and was later rebranded Mahindra Satyam.

Shares of Mahindra Satyam declined 0.52% to end trading at Rs75.85 on BSE on Tuesday, while Tech Mahindra gained 0.14% to Rs697.15. The benchmark Sensex rose 0.65%

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