mahindra satyam merger

7/24/2019 Mahindra Satyam Merger

1/15

Satyam Computers Services Ltd- Introduct

Established on 24thJune 1987 by B Rama Raju and B Ramalinga RajuStarted by setting up two sotware te!hnology par"s in Se!underaba# Ranga Reddy in $%&% &ro'ided sotware de'elopment and !onsulting ser'i!es to larg!orporations(on'erted into a &ubli! )imited (ompany on 2*th$ugust 1991+n!orporated ,un # Bradstreet Satyam Sotware -&. )td% +n 1994Started operating globally through o/!es in 0S$ Japan $ustralia Europe in 199*

Entered into a 33 J5 agreement with 5enture 6lobal Engineering )+(0S$ in 2333%ieup with 5ignette (orporation o the 0S or the implementation o ebusiness appli!ations Signed an eual J5 with :*%; bn 0S networ"ing !ompany (ompute$sso!iates +n! -($.Re!ei'ed the


2/15

Tech Mahindra- Introduction

$n +ndian + ser'i!es networ"ing # te!hnology solutions andB& ser'i!es pro'ider @rm?ounded in 198* by $nand Cahindra in &une +ndia as a part o

Cahindra 6roup =as operations in more than 1 !ountries with 43 sales o/!esand 72 deli'ery !entresne o the ?ab 3 !ompanies in $sia a!!ording to ?orbes$ SE+ (CCi le'el organiDation with operations in 0S$0 0$ECalaysia Japan

Ran"ed F in +ndiaGs sotware ser'i!es -+. @rms # 111 in?ortune +ndia 33 list or 2312% +nitially owned by British ele!om but later on merged intoCahindra 6roup?ormed a J5 with Cotorola +n!% under the name (an'asC in 233*>on bid or a!uiring the raud hit Satyam (omputer Ser'i!es in233839e!h Cahindra bought 1H sta"e in (om'i'a in 2312


3/15

Pre Merger Scenario at Tech Mahindra & Satyam

$ter initial su!!essul years o Satyam an issue o2338

Cr% Ramalinga Raju announ!ed :1%* billion bid or t!ompanies run by his own amily members

he deal was abandoned ater protest rom institutshareholders

+n 2338 barred rom any business with >orld Ban" years or pro'iding Ban" staI with improper bene

+n 2339 SatyamKs (? Srini'as 5adlamani !onessthe raud at Satyam done by Cr% Ramalinga Raju by@!titious salary a!!ounts

Satyam (omputersSer'i!es )td%

$ part o Cahindra group !onglomerate and ran"ed

the top +ndian + @rms perating in a di'erse range o un!tions in!luding

Support Systems perations Support Systems -S


4/15

Vertical Presence


5/15

Tech Mahindra and Mahindra Satyam: Combined

EAisting (lients # EAistiIeringsCerger SynergiesC (ube -C;.

)ost (ustomers

+norgani!


6/15

Signifcant Cross-Pollination o !"erings

h hi d d hi d d i


7/15

Tech Mahindra and Mahindra Satyam: #oundatio$ro%th

nd-to-nd ManuacturingCanua!turing heritage enhan!es 'alue proposition &resen!e o '(() Manuacturing *ccounts

Automotive, Aerospace, Chemicals &Consumer Electronics

Strong Telecom CapabilitiesSpe!ialist o!us on ele!omL Car"et )eaderSynergies e'ident in other 'erti!als throughenterprise mobility (RC # billing solutions'+( *ctive CustomersWireline, Wireless, Cable, Satellite

nterprise Services ,pertiseStrong credentials a!ross S$& # ra!le(oE ?o!us5erti!al Solution emplates+& Based Solutions ,eep eApertise in B+ # $nalyti!s+& Solution &latorm i,e!isions +n'estments in

(loud oIerings

6oal ,ri'ing 6rowth a

$!!ount Cining>ider portolio o ser'i!e!lients?o!us on growth 'erti!alsmar"ets

evenue

$ro%th

Bene@ting rom !ost synCultile'el approa!h or

margin impro'ementRightsiDing the talent p)e'eraging s!ale or bet

!peratingMetrics

(ontinue dominan!e in $!!elerate new ser'i!e 6C with allian!es


8/15

Degree of Change in

Acquired Company

high

low

low h

Degree of Change in Acquiring Company

Absorption

Acquired company conforms toacquirer

PreservationAcquired company remains

independent

Transformatio

Both companies find newoperate

Reverse MergUnusual case of acqu

leadership

Best of BothAdditive from both sides

Types o merger.ac/uitions,e@ning the End State


9/15

1% (ustomer 5alue &roposition

-. Core oIerings will enable the

!lient to ha'e more oIeringsrom one !lient leading-. (on'enien!e-. )ong engagement

2% Car"eting+nitiati'es

- 0ni@ed Ogotomar"etK strategy

M$ 01#ITS *12 S31$I


10/15

;% S=$RE, SER5+(ES # S=$RE,+


11/15

4% Re'enue rom diIerent geographiesde!reasing the ris" o impa!t rom onelo!ation

Re'enue Split

$meri!as Europe

Emerging Car"ets

Bene@ts

perational

Synergies

Sour!ingBene@ts

StandardiDationo

businesspro!esse

s

4thlargest

+ser'i!e

!ompany

% therBene@ts

M$ 01#ITS *12 S31$I


12/15

Re'enue0S:2%4bn

>or"or!e7333Q

$!ti'e (lients ;3Q

(ountries 4

Result o the merger

he 'alue !reation bythe merger o the twoentities

M$ 01#ITS *12 S31$I


13/15

e!h Cahindra2;333 employees Satyam 433

$ttrition Rate 2H in the !risis year 233913 and F o employees 4333 in ?P39 27333 in ?P13

Both 'oluntary and non 'oluntary attrition

$ttrition rate dropped to 1;H by 231;

9H leadership role hired rom inside the @rm insterom outside

2 year wor" eA% (hoi!e to be!ome ) or an eApe

Brand name retention Cajority o employees in !ompanies supported

=R issues


14/15

1e%Program

mes

SalesReboot

(ampaign

Cajorthrust

gi'en to!ampus

re!ruiting

Buddyreerral

program

6loballeadership

!adre


15/15T4*15 3!6

mahindra satyam merger

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