Business | Fri Feb 15, 2013 12:54pm IST

Mahindra Satyam buys 51 percent stake in Brazil's Complex IT

BANGALORE (Reuters) - Mahindra Satyam, a software services unit of India's $15.9 billion Mahindra group, said it acquired a 51 percent stake in Brazil's Complex IT, a provider of consultancy services on the use of SAP AG's (SAPG.DE) business management software.

Satyam paid $6.5 million initially and expects to pay a total of $20-23 million over an 18-24 month period for the 51 percent stake, based on certain pre-agreed milestones being achieved, Arvind Malhotra, the company's head of Latin American operations, told Reuters on Friday.

The company has the option of purchasing the remaining 49 percent as well, Malhotra said.

Complex IT brings 500 staff, customers such as C. Vale Cooperativa Agroindustrial, and annual revenues of about $50 million to Satyam. It also opens up the $36 billion Brazilian IT services market for the Indian provider.

Tech Mahindra (TEML.NS), Satyam's parent company, is looking to make acquisitions to add capabilities and customers as it plans to double its revenue to about $5 billion by 2015.

The company has acquired businesses like the back-office unit of Hutchison Whampoa Ltd (0013.HK) and Comviva, an Indian provider of software for telecommunications carriers, in the fiscal year that ends March 31.

The company has said it expects to complete merging Satyam with itself in March. The combined company, which is expected to get a brand overhaul soon, is the fifth-largest software services provider in India.

(Reporting By Harichandan Arakali; Editing by Prateek Chatterjee and Matt Driskill)

Top India News

Reuters Showcase

Auto Sector

Auto Sector

Ford aims to triple exports from India with $1 billion plant  Full Article 

Micromax Stake

Micromax Stake

SoftBank-led group in talks to buy stake in Micromax - sources  Full Article 

Airwaves Auction

Airwaves Auction

Top three mobile operators spend $13.6 bln in airwaves auction  Full Article 

Insurance Sector

Insurance Sector

Australia's IAG to up stake in joint venture with SBI  Full Article 

Accenture Results

Accenture Results

Accenture raises revenue growth forecast for second time  Full Article 

GAIL's Plans

GAIL's Plans

GAIL seeking 7 LNG cargoes from Oct. 2015-Dec. 2016 - tender document.  Full Article 

Eyeing Pininfarina

Eyeing Pininfarina

Pininfarina confirms Mahindra interest, says no deal yet  Full Article 

SH Kelkar IPO

SH Kelkar IPO

SH Kelkar files prospectus for IPO, seen at around $100 mln  Full Article 

Australia Beat India

Australia Beat India

Smith shines as Australia down India to reach final  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage 

X