Business Daily from THE HINDU group of publications
Saturday, Jan 20, 2007
ePaper
Business Daily from THE HINDU group of publications Saturday, Jan 20, 2007 ePaper |
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Info-Tech
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Mergers & Acquisitions
Our Bureau
Nipuna revenues have grown from $20 million last fiscal and are projected to touch $37 million, reflecting a growth of about 85 per cent.
MR RAMALINGA RAJU
This follows an agreement with the investors in Nipuna for redemption of 50 per cent of the preferential shares held by them and the balance 50 per cent to be converted into equity shares. Intel Capital Corporation and Olympus Capital Holdings had deployed $20 million in Nipuna during 2003-2004.
Value
The Chief Financial Officer of Satyam, Mr V. Srinivas, told newspersons that the enterprise value of Nipuna was estimated at about $140 million-180 million and the buyout of stake of investors was likely during the first quarter of 2007-2008. Nipuna revenues have grown from $20 million last fiscal and are projected to touch $37 million, reflecting a growth of about 85 per cent. Referring to onsite and offshore business, Mr Srinivas said that the offshore component has grown by about 132 basis points and accounts for about 49 per cent revenue. This is significant as onsite billing rates are at $57 as against $27 offsite.
BIG DEALS
The Satyam Chairman, Mr B. Ramalinga Raju, said that they have won some big deals during the Q3 and added about 2,746 associates of the 12,000 during the year, along with some 34 new customers. Together with subsidiaries, the company now has about 38,188 employees including 34,405 in Satyam. The company continues to pursue larger deals in the range of $100 million-200 million and is participating in over 12-16 deals and expects to close at least two such large outsourcing deals, he said. The top 10 customers of Q3 witnessed a sequential growth of 14 per cent on the back of large deals during the year. The company now has about 164 $1 million plus customers and expects these engagements to get further strengthened.
RESTRICTED OPTIONS
Referring to the attrition-related issues, Mr Raju said that the company managed to bring this down during the quarter with higher compensation package and providing employees the option to enhance their career path while continuing to work. This has begun to yield results. During the current quarter, the company expects to offer restricted stock units (RSUs) to senior management in the company. The company is in pursuit of some cross border acquisitions but refrained from indicating if any thing is on the radar right now. Commenting on the pricing scenario, the President of Satyam, Mr Ram Mynampati, said "as contracts get renegotiated, we expect about 3-5 per cent increase in prices. Significantly, two-three years ago, if about 90 per cent of the deals went to large systems integrators such as IBM, Accenture, they account for about 60-70 per cent now, opening up the rest to Indian service providers due to the value proposition they bring and also their capabilities."
More Stories on : Mergers & Acquisitions | Outsourcing | Software | Satyam Computer Services Ltd
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